PYN Elite’s target country, Vietnam, is not drifting into crisis

— 23.09.2022

Interest rate hikes by the Fed and the ECB are keeping equity investors on edge. The Vietnamese economy and stock markets are bending but will not break. Here are a few highlights from our latest Investor Letter:

• Interest rates will rise quickly and sharply.
• The Vietnamese economy has passed our stress test – the growth can withstand crises.
• Vietnam’s forecast for GDP growth is +7.5% for 2022 and +5.5% for 2023.
• Vietnam’s public debt has fallen from 61.4% to 43.1% (2017–2021).
• This year’s earnings growth for listed companies: +25%.
• Vietnam’s P/E ratio for next year is 9.4.
• The compound annual earnings growth rate (CAGR) of Vietnamese banks is an impressive +31.2%.
• Vinhomes will achieve a new record in the presales of housing: USD 5.1 billion.
• The volume of housing production in Hanoi and HCMC is 50,000 units per year, while the need is for 2.6 million new units over the next 10 years.
• CTG bank’s earnings are projected to grow by 51% in 2022.
• CTG is substantially undervalued, relative to BID Bank: P/B 1.1 <> 1.6.

Read the Investor letter from here.


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.

Investor letter 3/2022.pdf