The £718m VinaCapital Vietnam Opportunity fund has survived an attempt to discontinue the trust, after its second largest shareholder voted against continuation at an AGM held yesterday (6 December).
In a stock exchange announcement, the trust’s board revealed 29.1% in total voted against the continuation proposal. The second largest shareholder, which was not named, accounts for 23% of votes.
All other proposals at the AGM were passed with over 90% of votes in favour.
After discussions between the shareholder and chair Huw Evans, VinaCapital said the shareholder wanted a performance conditional tender mechanism (PCTM) to be introduced in order for it to back continuation.
The board argued that a PCTM would not be in shareholders interests, but the shareholder “was not persuaded”.
Directors will now report back to shareholders in March 2024, in accordance with the AIC’s code of conduct.
According to FE Fundinfo data, the trust has returned 55.54% over the last five years. It currently trades at an 18% discount to net asset value according to the AIC.