Frequently asked questions

An investment company is typically closed-ended, meaning it issues a fixed number of shares that are traded on a stock exchange. It pools capital from investors to create a diversified portfolio of securities, managed by a professional fund management company. This allows investors to access a variety of investments without managing them individually.

Dragon Capital Management (HK) Limited is VEIL’s investment manager. Dragon Capital Group Limited, the ultimate parent company of the investment manager, was founded in Vietnam in 1994 and launched VEIL the following year. As of 31 December 2023, the Group had $5.5bn of assets under management and employed over 200 people.

VEIL charges 1.5% per annum of its Net Asset Value (NAV). There is no performance fee.

In 2023, VEIL’s ongoing charges (calculated as operating expenses including management fee divided by average NAV for the year) was 1.96%.

No, VEIL does not pay a dividend. To maximise fund performance and long-term growth, all dividends are reinvested. The dividend policy is decided by VEIL’s Board of Directors and is periodically reviewed for suitability.

VEIL is governed by a Board of Directors that oversees the fund’s operations, ensuring adherence to regulatory standards and acting in shareholders’ best interests. The Board also monitors the investment manager’s activities to align with VEIL’s strategic goals and investor expectations.

Individual investors can purchase VEIL shares through online investment platforms or a stockbroker offering access to the London Stock Exchange. Some of these platforms are listed here.

Shares purchased through an online investment platform may be held digitally via a ‘nominee account’. It is important to check whether your platform passes on shareholder rights such as receiving the annual report and being able to attend and vote at annual general meetings. However, VEIL publishes its annual report on its website and as of 2024 hosts its AGMs in London which are also broadcast live.

Yes, VEIL shareholders have full voting rights and can attend AGMs Both the investment manager and the VEIL Board of Directors encourage investors to have a say in how VEIL is managed.

Most large investment platforms offer shareholders the opportunity to attend AGMs or vote.

The Association of Investment Companies website has a dedicated section on How to attend an AGM and How to vote your shares using different investment platforms.

As a London Stock Exchange-listed investment company, VEIL is subject to the regulations of the Financial Conduct Authority, including corporate governance and disclosure of information.

VEIL publishes manager commentary and information on its portfolio holdings and performance on a monthly basis. These are available in the ‘Reports’ section under the ‘Resources’ tab at the top of the VEIL website.

VEIL periodically repurchases its own shares to address the issue of the shares trading at a discount to their net asset value (NAV). By reducing the number of shares in circulation, each remaining share represents a larger portion of the company’s assets, which can help narrow the discount and enhance shareholder value.

This is the difference between an investment company’s net asset value (NAV) and share price. If the share price is above a company’s NAV it is trading at a premium. If the share price is below NAV it trades at a discount. These variations can result from factors such as market demand or investor sentiment where the investment company is listed, or the perceived performance of the company’s assets.

VEIL conducts most of its investment activities in Vietnamese dong (VND), which cannot be hedged against other currencies. VEIL’s financial statements are reported in US dollar terms as it is deemed to most faithfully represent the economic effect of underlying transactions, events and conditions. VEIL’s operating expenses are denominated and paid in US dollars. However, VEIL’s shares are traded in British pounds (GBP) on the London Stock Exchange.

This structure can introduce the following currency risks:
VND to USD: VEIL invests in VND but reports in USD, so any depreciation of the VND against the USD can reduce the USD-denominated value of the fund’s investments.

USD to GBP: As an investor, when you buy or sell VEIL shares on the London Stock Exchange, transactions occur in GBP. Therefore, fluctuations in the exchange rate between the USD (in which the fund’s performance is reported) and the GBP (in which shares are traded) can impact the value of your investment when converted back to GBP.

Gearing refers to the use of borrowed funds to increase investment exposure. VEIL periodically utilises a short-term cash management facility for liquidity purposes when rebalancing its portfolio or investing to IPOs and private transactions. VEIL also has a facility that can also be used to enhance gains; however, it also increases losses if investments decrease in value or borrowing costs rise.

VEID is a market trading in USD, whereas VEIL is a market trading in GBP. The shares traded on both markets are the same.

The prices on VEID are determined by market participants, such as investors and liquidity providers. In normal market conditions, the prices on VEID and VEIL should trade in line with each other and the prevailing GBP-USD exchange rate.

The shares traded on VEID and VEIL are the same. You may choose to trade on VEID if you prefer to transact in USD. Alternatively, you may choose to trade on VEIL if you prefer to transact in GBP.

Your shareholdings will not be affected by VEID. VEID simply provides an additional market for trading the same shares.

You can trade on both VEID and VEIL, the shares being traded are the same.
If you have bought shares on VEIL using GBP, you can sell them on VEID to receive USD. Similarly, if you buy shares on VEID using USD, you can sell them on VEIL to receive GBP.

This may be possible, please check with your custodian, administrator or wealth manager.