PYN Elite down 10.5 % in October

VN-Index -10.9% in October, the strongest decline since Sep-2022. PYN Elite was in line at -10.5% MoM. The market became more jittery as VND depreciated 3.7% against USD in 3 months, which raised concerns that SBV might take actions to protect the dong amid FED’s uncertain rates outlook. The sell-off was later exacerbated by the hedging activities of the bondholders, who sought to hedge positions after subscribing to $250 million exchangeable bonds issued by Vingroup. Disappointing Q3 results of several listed companies also dampened sentiment. Our core holdings demonstrated resilience, with total earnings +24% YoY in 9M23, vs. -10% YoY of total companies in VN-Index.

Macro: Trade data marked the 2nd month of positive growth after 8 months of decline, with Oct. export +5.9% YoY and import +5.2% YoY, higher than growth rates in September. Industrial production +4.1% YoY, the highest level since Oct-2022. Registered FDI +15% YoY to $25.8 bn in 10M23, led by FDI to manufacturing sector (+46% YoY & accounting for 73% of total FDI). Deposit rates in October dropped further to even lower than Covid levels, and lending rates already eased by ~300 bps compared to summertime. The government proposed in October to extend the VAT cut program to June 2024.

PYN Elite Stock of the Month: FPT

Being Vietnam’s leading Tech conglomerate, FPT is now home to over 27,000 engineers, the largest IT headcount in Vietnam. In recent years, FPT has grown from a software outsourcing vendor into a comprehensive IT services provider. Supported by its cost advantage, FPT benefits from the global mega-trend of Digital Transformation (DX), with DX revenue soaring at 42% CAGR during FY18-22. FPT’s education business, now spanning from K12 to university, is expanding fast with number of students growing over 40% p.a. to over 108,000 in 2022, helping to grow future talent pool for its IT services. FPT’s foreign room has been full since 2011. We were able to get sizable blocks in Oct. to increase our IT sector’s weight to 4.7%, compared to VN-Index’s 2.8%.


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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 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.