Several of PYN Elite’s top holdings companies reported very strong earnings for the first quarter, in spite of earnings growth in the stock market being generally subdued. The mall operator VRE was a particularly strong performer. Thanks to several factors, its earnings growth was 171%, which exceeded even our expectations. The housing company Vinhomes successfully completed block deals for its plot land in spite of the difficult market situation, and this led to earnings growth of 162%. The business of the airport operator ACV will improve as air travel is returning to normal, but earnings growth for the first quarter exceeded expectations at +86%.
Sacombank delivered excellent earnings growth of 49%, in line with our expectations. The banks CTG, TPB, HDB and MBB achieved modest earnings growth due to the general slowdown of economic growth in Vietnam and the interest rate environment. The earnings growth outlook for banks will improve further as economic growth accelerates.
Read the new Investor Letter 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 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 2/2023.pdf