VEIL Investor Update

Overview

The VEIL investor update March 2024 was a webinar hosted by Dragon Capital for investors in Vietnam Enterprise Investments Limited (VEIL), presenting the fund’s outlook for 2024. The session was moderated by Will Ross, Chief Marketing and Distribution Officer at Dragon Capital, and featured Le Anh Tuan, VEIL’s newly appointed Lead Portfolio Manager, delivering his first public update since stepping into the role, alongside Thao Ngo, Co-Portfolio Manager.

Agenda

• 0:00 Introduction
• 1:55 2024 Outlook: Portfolio Manager’s View
• 34:46 Global and Vietnam Macro Sensitivities
• 40:37 Vietnam Market View
• 43:11 Q&A

Key Discussion Points

• 2024 Vietnam macro outlook: Tuấn Lê set out the case for 2024 as a year of economic recovery, citing continued government support through monetary easing and fiscal spending, record-low lending rates, and forecast GDP growth of around 6% to 6.5%.
• Sector positioning across the VEIL portfolio: The team reviewed VEIL’s largest sector exposures — banking, real estate, steel, retail, and technology — explaining the rationale for overweight positions in banks and residential property and the fund’s underweight stance in oil and gas and F&B.
• Top holdings review: Detailed updates were given on VEIL’s largest positions, including Hòa Phát, ACB, VPBank, Khang Điền, and Mobile World, covering earnings expectations, valuation, and company-specific catalysts for 2024.
• Buyback policy and share price support: William Ross addressed VEIL’s share buyback programme as the board’s key tool for managing the discount to net asset value, noting buyback activity carried out year-to-date.
• Global and Vietnam macro sensitivities: Thảo walked through the assumptions underpinning the outlook, including expected Fed and European Central Bank rate cuts, a recovering global export cycle, rising FDI inflows, and stable currency and inflation conditions.
• Vietnam equity market view: The team discussed 2024 earnings growth forecasts, valuation levels relative to history, and the potential for renewed foreign inflows tied to a possible upgrade to secondary emerging market status.
• Live investor Q&A: Questions covered VEIL’s prior-year underperformance versus the index, foreign investor flows, the outlook for IPO activity, historical accuracy of earnings forecasts, Vietnam’s energy mix and power supply, and how Vietnamese banks fund loan growth through capital raises.

Information about Vietnam Enterprise Investments Limited can be found here.

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