VEIL Monthly Report – September 2025

Performance

Fund Commentary

VEIL’s NAV fell 3.2% in September versus the VNI’s 1.3% decline, as markets paused after two months of strong gains. Profit-taking in banks and brokerages was broad-based, ahead of FTSE’s Secondary Emerging Market upgrade in early October. Liquidity remained firm but moderated from August’s record highs, with HSX turnover averaging around $1.3bn per day as trading narrowed to a handful of large caps, led by VIC’s 35.9% MoM rally. The Fund’s underweight position in VIC, a short-term driver of index performance, was the main source of relative underperformance.

Banks (–2.6% contribution) were the main drag, with core holdings VPB and MBB correcting after strong gains in August. The decline reflected short-term profit-taking rather than any change in fundamentals, as asset quality continued to improve and loan growth remained on track for H2 targets. Brokerages and retail also softened amid sector rotation, while metals and utilities added limited support. In contrast, residential real estate (+0.5%) provided stability through Taseco Land (TAL) (+21.2%), which rose after a successful private placement in which VEIL participated. This investment highlights VEIL’s continued focus on developers with sound balance sheets, legal status, and solid execution.

The portfolio remains positioned to capture both cyclical recovery and long-term structural growth. Core bank holdings retain strong fundamentals, with balance sheet quality and earnings visibility improving, while residential developers stand to benefit from improving housing demand as policy reforms take hold. VEIL’s newly initiated positions in TAL and TCBS reflect our conviction in Vietnam’s reawakening IPO and private placement cycle. These investments strengthen our exposure to reform-driven sectors positioned to benefit from near-term catalysts while offering long-term growth potential as Vietnam advances toward Emerging Market classification.

Stock in Focus: Taseco Land (TAL)

Taseco Land Taseco Land (TAL) is an emerging Hanoi-based property developer with a scalable, high-margin land bank, and growing partnerships with leading international names. VEIL participated in TAL’s recent private placement, acquiring shares at a favourable valuation, a transaction that raised approximately $14.7mn for a 4.1% stake in TAL. The placement provides TAL with funding flexibility to accelerate development of its Hanoi projects, while offering VEIL early exposure to one of the city’s most dynamic mid-tier developers.

TAL has more than 240ha of land within a 15km radius of Hanoi’s CBD, strategically located along key infrastructure corridors. Its portfolio includes the Long Biên Central project (1.6ha, ~500 units) due to drive earnings from 2026, Trung Văn (3.8ha), and the upcoming Thượng Cát and Giải Phóng sites, both benefiting from recent planning approvals.

The company’s “Cooperate with the Giants” strategy of co-developing with partners such as CapitaLand and Mapletree provides access to expertise, capital, and brand strength while de-risking execution. TAL targets a 3.5x profit growth between 2025–27, supported by a three-year NPAT CAGR of 58%, as new projects come online. The stock trades at an approximate 50% discount to RNAV, implying attractive long-term upside as earnings visibility improves and urbanisation accelerates in northern Vietnam.