VN-Index -7.4% in June due to weak performances of bank, brokerage, steel and real estate stocks. PYN Elite -7.9%. As of 6 months, VN-Index shed around 20%. MSCI’s All-Country World Index tumbled by 21% YTD, and Nasdaq fell 30%. HOSE’s trading liquidity dropped for four months consecutively, down to $620m from over $1b in March. Investors became cautious when central banks around the world tightened their policy to stamp out surging inflation. Primary bond market warmed up with one public and 34 private corporate bond issuances in May. Banks issued nearly 15 trillion VND, 60.7% of total bond value. Property developers followed with about 7 trillion VND, which accounts for 28.5%.
Macro: Vietnam saw a strong recovery in 2Q: GDP +7.7% (highest growth rate in the same quarter during the 2011-2021), industry and construction +8.9% and services +8.6%. Top growth segments in the service sector: food and accommodation (+26%), entertainment (+14%), logistics (+9.4%). CPI in June increased by 0.7% MoM. Half a year inflation is still within the forecast at 2.4%.
The stock of the month: ACV is the biggest airport operator in Vietnam, currently managing 22 airports. ACV set 2022 target to grow revenue by 17% and profit before tax by 59% vs. 2021. The company has plenty of room for long-term growth:
1. Terminal 3 in Tan Son Nhat (20 million passenger capacity annually) will start construction this year.
2. Long Thanh airport (100 million passengers per year) is due to be finished by 2025.
3. Vietnam is now open to international traveling and the domestic market recovers fast.
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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.
PYN Elite Monthly Review.pdf