Classified: Public
PUBLIC EQUITIES & FIXED INCOME
Thu Nguyen, CFA, Head of Investment
29 October 2020
Classified: Public
VinaCapital Traditional Assets Product Platform
2|
Offshore products Domestic products
VVF
VAF
VESAF VEOF
VIBF VFF
Segregated Mandates
Equity Fixed Income
ETF VN100
Equity fund
Fixed income fund
Balanced fund
Classified: Public
Portfolio Management Team
3|
ThuNguyen, CFA
Head of Investment
• Lead Portfolio Manager of VVF and VAF
• 17 years of investment experience
• 5 years with VinaCapital
Thao Ong, CFA
Investment Director
• Manages VVF and VIBF
• 13 years of investment experience
• 9 years with VinaCapital
Phuong Nguyen
Senior Investment Manager
• Manages VAF and VESAF
• 9 years investment experience
• 6 years with VinaCapital
Minh Dinh
Investment Director• Manages VEOF and ETF VN100
• 11 years of investment experience
• 4 years with VinaCapital
Thang Pham, CFA
Senior Associate
• Manages VFF and VIBF
• 10 years of investment experience
• 1 year with VinaCapital
Nguyen Tran, CFA
Assistant Portfolio Manager
• 7 years of research & investment experience
• 7 years with VinaCapital
Phuong Nguyen, MSc.
Assistant Portfolio Manager
• 8 years of research & investment experience
• 2 years with VinaCapital
Huong Nguyen
Assistant Portfolio Manager
• 5 years of research & investment experience
• 3 years with VinaCapital
Classified: Public
We are growth-oriented investors that seek to capture and participate in Vietnam’s structural economic growth
4|
Investment Philosophy
We focus on bottom-up stock selection but also apply a top-downoverlay of macro and policy views
We have an absolute return mentality, which is reflected across stock selection, portfolio management and risk management
We are high-conviction investors that often take large, long-term, off-benchmark bets in concentrated portfolios
We pursue the highest standards of integrity and corporate governance with risk mitigation, and we are aware of social responsibility in investing
Classified: Public
Investment Process
5|
Screening
Investment Universe
Company Analysis
Portfolio Construction
Portfolio Monitoring
• 1,600 listed stocks: size & liquidity• Financial strength• ESG
• 100 listed stocks• Company visits
• Due-diligence • Financial modeling & valuation• Biased towards growth and strong cashflow
• Conviction• Risk awareness: correlation, volatility• Comply with mandate restrictions Di
scip
line
• Company performance• Macro, sector-related• Company meetings • Internal reporting• Target price• Exogenous event/change in fundamentals• Corporate governance• Strategic exit at premium• Observing mandate restrictions (e.g. UCITS)
Classified: Public
Forum One – VCG Partners Vietnam Fund (VVF)
6| Fund data as of 30 September 2020Source: VinaCapital, Bloomberg
• P/E 2020 of VVF: 12.3x versus 16.9x of VN-Index• EPS growth 2020 of VVF: 5.9% versus -12.0% of VN-Index
Growth at reasonable price (GARP)
• Small- & mid-cap stocks: 55% NAV versus 29% of VN-Index• FOL stocks: 35% NAV• Active shares: 60%
Index-agnostic
• 160 meetings with investee companies per year on average
Active management
Classified: Public
Vietnam Access Fund (VAF)
7|
Foreign Investors
VAF(Cayman Islands)
VESAF (Vietnam open-ended
fund)
FOL stocks High-growth Small- &
mid-caps
Direct investments
IPOs and Pre-IPOs Listed equities Special situation stocks Other financial instruments
Up to 100%
• Small- & mid-cap stocks: 63% NAV versus 29% of VN-Index
Small- & mid-caps focus
• FOL stocks: 50% NAV
FOL stocks focus
• P/E 2020 of VAF: 10.9x versus 16.9x of VN-Index• EPS growth 2020 of VVF: 6.5% versus -12.0% of VN-Index• Active shares: 70.5%
Reasonable valuation
• 200 meetings with investee companies per year on average
Active management
Fund data as of 30 September 2020Source: VinaCapital, Bloomberg
Classified: Public
Foreign Ownership Restrictions In Vietnam Stock Market
8| Source: Bloomberg
100
300
500
700
900
1,100
1,300VN-Index
Jan 2016: apply T+2
Apr 2009: FOL cap increased to 49% for most; Banks
stay at 30%
Jun 2015: companies allowed to
determine own FOL
2000: FOL cap at 20%
Jul 2003: FOL cap increased to 30%
Jan 2021: New Securities Laws
effective
From 2022 (expected): NVDR introduced
Classified: Public
State Divestments And Privatisations
9| Source: Ho Chi Minh City Securities Company (HSC)
827
5,566
1,344
327
-
1,000
2,000
3,000
4,000
5,000
6,000
2016 2017 2018 2019
State IPOs & placements (USDm)
Classified: Public
VN100 ETF and Fixed Income
Classified: Public
VN100 – The Closest Tracker Of VNIndex, Accounting For 84%1 Of VN-Index
11|1: as of 30 September 2020Source: Bloomberg
50
100
150
200
250
300
350
2012 2013 2014 2015 2016 2017 2018 2019 2020
Performance of VN Index, VN100 and other ETF indexes (USD terms)
VN100 VN-INDEX VN30 FTSE Vietnam MVIS Vietnam MSCI Vietnam
VN-Index
VN100
Classified: Public
Fixed Income Market: Steady Growth
12| Source: Hanoi Stock Exchange, Fiinpro
24% 25%28% 27% 28%
5%7%
9% 11%13%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
2016 2017 2018 2019 1H2020
Bond market size as a percentage of GDP
Corporate Bond
Government Bond
Classified: Public
Government Bond Yields And Corporate Bond Yields
13| Source: Hanoi Stock Exchange, Fiinpro
Government bond yields have declined to all-time low level due to surplus liquidity
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Government bond yields (%)
3Y 5Y 10Y 15Y
10.3
9.5
8.2
7.0
10.4
10.6
10.3
9.2
6.7
10.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
Real Estate Energy Financials Banks Others
Corporate bond yields by sector (%)2019 1H20
Corporate bonds offer attractive yield, while FX risk is low
Classified: Public
Corporate Bonds: Increasingly Diversified Base of Issuers And Investors
14| Chart note: New issuance in 2019Source: Ministry of Finance, Hanoi Stock Exchange, Fiinpro
Credit rating
• Sovereign rating: Below investment grade (S&P: BB; Moody’s: Ba3)• Corporate bonds: No rating
36%
39%
3%
2%6%
3% 12%
Investor Profile
Banks Securities Insurers Funds Retail Foreigners Others
32%
17%30%
6%
4%
2% 2%7%
Issuer Profile
Banks Financials Real Estate IndustrialsConsumer Staples Energy Mining Others
Classified: Public
Disclaimer
15|
The information contained herein has been prepared by VinaCapital (the “Company") and is subject to updating, completion, revision, further verification and amendment without notice.
The information contained herein has not been approved by any listing authority or any investment regulator. The information does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever.
No undertaking, representation, warranty or other assurance, expressed or implied, is made or given by or on behalf of the Company or any of its directors, officers, partners, employees, agents or advisers or any other person as to the accuracy or completeness of the information or opinions contained herein and no responsibility or liability is accepted by any of them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise for any other communication written or otherwise.
The information herein may not be reproduced, re-distributed or passed to any other person or published in whole or in part for any purpose. By accepting receipt of this document, you agree to be bound by the limitations and restrictions set out above.
Neither these pages nor any copy of them may be taken or transmitted into or distributed in any jurisdiction where the distribution of such material would be prohibited under the jurisdiction’s applicable securities laws. Any failure to comply with this restriction may constitute a violation of national securities laws.
Past performance is not a guarantee of future returns.
Classified: Public
17th Floor, Sun Wah Tower115 Nguyen Hue, District 1, Ho Chi Minh City, Vietnam
P: +84 (0) 28 3821 9930 F: +84 (0) 28 3821 9931Email: [email protected]
Website: www.vinacapital.com
Ho Chi Minh City | Hanoi | Singapore |
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