In this Investor letter we have few important notes for our positive expectations in the Vietnamese stock market. The earnings growth in the coming years looks very strong and we believe this will be the key driver in the market. We also assume that the increase in infections during the fourth wave of Covid-19 has leveled off and the situation will improve substantially this fall.
The banks in the PYN Elite portfolio (TPB, HDB, MBB and CTG) have generated good returns, but the valuation multiples of banks remain modest compared to their expected growth in the next few years. VRE (shopping malls), ACV (airports), VEA (cars and mopeds), CEO (leisure properties) and SCS (air cargo) are among stocks whose earnings growth may deliver positive surprises in the years to come, once the negative earnings impacts of the COVID-19 pandemic are entirely in the past. However, potential new waves of infections and new restrictions may postpone earnings performance.
Important information regarding the text and 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.