VietNam Holding (VNH ) plans to offer shareholders the sweetener of a new redemption facility at its five-yearly continuation vote next month.

At a market capitalisation of just £84m, the investor in Vietnam-listed equities has something of a liquidity issue, but the board is planning to get around this with the introduction of a redemption facility.

It is no doubt hoping the new facility, which will provide shareholders with an annual opportunity to cash in their shares, will ensure its continuation at its vote on 21 December.

The board said it will offer ‘fair market value’ for the shares and that it brings a number of merits to investors, including liquidity and a narrowing of the discount, which currently stands at 10.9% but has averaged 14.5% over the past year, according to Numis data.

‘The board believes that this modernisation of the closed-end fund structure should lead to a narrower discount over time,’ it said in a stock market announcement.

It added that it will provide an ‘additional mechanism to allow the company to seek to address, through share redemptions, buybacks, and new issuance from time to time, market imbalances in the supply of, and demand for, the ordinary shares’.

The board is also expecting an ‘uplift in net asset value’ as a result of the redemption facility. The shares were largely unmoved on the news.

At the upcoming annual general meeting shareholders will be asked to vote in favour of, the board highlighted the track record of Vu Quang Thinh of Dynam Capital who runs the fund.

Since Dynam was appointed in 2018, the trust’s NAV per share has risen 43%, outperforming the Vietnam index by 30% and the Vietnam All Share index by 20%.

‘Furthermore, the company’s average discount is currently the narrowest of the three London-listed funds which invest in Vietnam,’ said the board.

‘Finally, in the past five years, the company has returned over $150m to shareholders through a combination of tender offers and share buybacks.’