PYN Elite’s original VN-Index target of 1800 was set at the time when Vietnam’s foreign reserve looked fragile, and government bond yields were 8%. At present, Vietnam’s foreign reserve has steadily increased, which lowered country risk substantially, and its government bond yields drop to 2% and could trail around 3-4% in the coming years. These factors allow higher multiples for the stock market.
The government will boost the economy with a huge infrastructure spending package for 2022-2024 and private sectors can benefit from higher earnings growth in 2022-2024. Taking all these revised parameters into account, PYN Elite has raised the VN Index target to 2500 for the end of 2024 based on fair target PE of 16.5.
Important information regarding the text and 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.