The good and the bad news

— 13.10.2022

TPB was among the first ones from our portfolio to come out with the Q3/2022 results. The bank continued its strong performance. In Q3 its earnings growth was 54% YOY, partly because of weak numbers from the previous Covid year. The more relevant was the earnings growth of 9M/2022: +35%. TPB’s non-performing loans are less than one percent of the entire loan book, and the bank has just confirmed that it has not financed the troubled real estate company VTP.

The very bad news is related to the Vietnamese Stock market. The investors have been in a panic for the past few days, and PYN Elite’s NAV has plummeted. Vietnamese Government has continued its disciplinary measures against those who play by the wrong rules in the financial markets. Now the bond market of the real estate companies has been under scrutiny, as the marketing of the bonds to retail investors has not been carried out according to the rules. Last Friday authorities arrested Mrs. Truong My Lan, a well-known real estate tycoon, and chairwoman of the unlisted VTP company.

The Central Bank of Vietnam, SBV, has announced that it will try to get the money returned to those who invested in bonds launched by the real estate company VTP on the wrong grounds. Principal owners of VTP own the unlisted bank SCB, and thus the problems with VTP hit the banking sector. As a result of the uproar, SCB’s depositors worried about their savings, which also led to a sharp drop in shares of listed banks.

Nothing seems to keep the stock market stable now, and there is not much one can do about it. However, the Vietnamese economy is still healthy, although the gradual interest rate hikes will slow down the growth a bit. Due to the solid conditions of Vietnam’s economy, there is no need to worry about PYN Elite’s portfolio, even though the sentiment in the stock market for the moment looks very bad.

Important information regarding the text and the Fund

The attached publication is marketing material and should not be regarded as a recommendation to subscribe or redeem units of the PYN Elite Fund. Before subscribing please familiarize yourself with the Key Investor Information Document, the Prospectus and the Rules of the Fund. The material presented in this text is based on PYN Fund Management’s view of markets and investment opportunities. PYN Elite Fund (non-UCITS) invests its assets in a highly allocated manner in frontier markets and in a small number of companies. This investment approach involves a larger risk of volatility compared to ordinary broadly diversified equity investments. The value of an investment may decline substantially in unfavorable market conditions or due to an individual unsuccessful investment. It is entirely possible that the estimates of economic development or a company’s business performance presented in this presentation will not be realized as presented and they involve material uncertainties.



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