The collapse of Silicon Valley Bank, Signature Bank and Credit Suisse – UBS emergency takeover had raised questions on banks’ operation in U.S. and Eurozone, thus leading to a sharp sell-off in the middle of March. In Vietnam, The State Bank of Vietnam (SBV) has monitored the system closely through credit growth quota along with other methods to keep sustainable growth and manage risk cautiously. After 2 rate hikes in late 2022, the SBV has lowered the refinancing rate to 5.5% from 6%. Also, the Central Bank is proposing a debt extension program to support the economy. The bond market warmed up in March, and successfully issued over 25.8 trillion VND, mostly real estate’s corporate bonds. VN-Index reflected all these exciting news, +3.9% last month, leading by real estate, banks and broker stocks. PYN Elite outperformed at +8.6%.
Macro: Vietnam’s GDP grew 3.3% YoY in Q1, the service sector was the highlight, +6.8% YoY. Weak consumer demand and declining exports restrained the GDP growth and the manufacturing PMI recorded a low number 47.7. The return of international visitors has benefited the economy: Revenue of accommodation & food segment +28.4% YoY, traveling segment +120%. March headline inflation down to 3.4% YoY, this is the second-month headline inflation went down.
PYN Elite Stock of the Month:
VEA currently has 13 subsidiaries and 8 affiliated companies in the automobile supporting industry. The company holds 30% of Honda, 25% of Ford and 20% of Toyota Vietnam in joint ventures, which bring in trillions of dividends every year. In 2022, Vietnam achieved a new record – over 500,000 new car sales, VEA also recorded the highest net profit in 10 years. Many big players had plans to start/upgrade production in Vietnam: General Motors-SAIC-Wuling, Hyundai, BYD, proving Vietnam is a potential market.
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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.
PYN Elite Monthly Review.pdf