From a fresh fund review regarding the coronavirus:
Amidst the bad news, Vietnam has, however, managed to curb the spread of the virus. So far, only 16 people have been infected, and all have recovered, which is no small feat for a country bordering China. The Vietnamese government’s measures to limit the spread of the virus have been very strong. All schools have been closed since the beginning of February, and students in Ho Chi Minh City and Hanoi will return to school no earlier than March 9, while students in other provinces returned to school on March 2.
The largest border crossings were closed at the end of January and reopened on February 20 with strict health surveillance for those crossing the border. The Vietnamese government also temporarily suspended visa exemptions for South Koreans due to the recent outbreak of the virus in South Korea. Individuals who have been in South Korea within 14 days of their arrival in Vietnam will be quarantined. Thanks to these measures, on February 27, the US Centers for Disease Control (CDC) removed Vietnam from its list of countries at risk of coronavirus spread, which is a very good sign.
“Individuals who have been in South Korea within 14 days of their arrival in Vietnam will be quarantined.”
Really off-topic, apologies for that, but in such quarantines, would those coming from elsewhere but with a layover in South Korea also be quarantined? I myself have a situation a few weeks from now where I need to fly to Hanoi from the United States. The only reasonable connections go through Seoul with a short layover..
I’ve been tracking the fund’s unit price daily. I thought Vietnam would take a big hit due to China, but I’ve overlooked their strong measures to curb infections. Perhaps Vietnam has similar characteristics to China, i.e., an inadequate ability to test, and an inadequate desire to disclose the extent of infections
PYN has held its own quite well in the market turbulence. At the end of the month, I’ll have to consider whether now is the moment to make an initial deposit.
Vietnam’s situation is indeed interesting from an investment perspective. I’ve been following PYN Elite, but from the sidelines so far. Have you also considered Vietnam-focused ETFs alongside the fund, whose investments presumably concentrate on larger companies? Or do such ETFs even exist?
One could imagine that it would be beneficial to have both if one believes in Vietnam.
Years ago, I used to follow Vietnam ETFs and even owned one for a while, but I was severely disappointed with their performance compared to the index.
Someone on a forum back then mentioned that these ETFs contain so many sluggish, partly state-owned companies that they simply can’t compete with specialized funds that pick the most promising companies. I haven’t verified the truthfulness of that claim. However, I personally gave up on the ETF when it seemed to be stuck like glue while the indices were soaring.
As for ETFs, an index is generally a safe bet. The more exotic the economy (and culture), the greater the importance of active portfolio management. That’s why PYN is interesting, despite the “high fees.” At today’s subscription price, one might even get a long period without the 12% performance-based fee.
I have long been eyeing PYN Elite as an attractive long-term investment. This, if anything, secures one’s pension. The ride will be like a roller coaster, which is part of investing with high return expectations. It is hard, however, to see how a country like Vietnam, with its demographics, entrepreneurial spirit, and GDP growth, could go wrong.
The January presentation mentioned that the average P/B for all companies listed in Vietnam was 1.2 at that time. Now the figure is probably already significantly closer to the book value, if not already below it. This should provide security in a bear market.
In addition, the “high water mark” currently appears to be 325,362 euros, which only improves the return expectation.
I made my first subscription on February 28th, and I still have plenty of dry powder. My trust in Petri is very strong, as long as Corona doesn’t take the master himself to the grave.
I’m also on the verge of making another entry; we’ll see if the first one happens at the end of this month or if we’ll wait for May Day.
It now depends quite a bit on the market’s pace in the coming weeks.
I loaded the initial capital into the fund about 4 years ago.
A rather hefty investor letter dropped into my inbox, and its thoroughness and analytical depth confirm the impression that the portfolio manager knows what they’re doing. It looks like it’s time for another top-up.
Now there’s such an attractive fund that I just have to write my first post on the forum. I’ve been looking for a long-term investment, and I’ve been reading prospectuses and investor letters for a while now. Today’s blog post finally confirmed my decision to subscribe. They cleverly timed that kind of text right before the subscription date; clearly an effective tactic.
Hopefully, this will add more risk (and returns) alongside the Nordea savings funds I received from my parents.
Welcome!
It seems my own first four years have been dedicated to the hobby, with hardly any returns.
I’ve marked my subscription dates roughly on the graph, and now at the turn of the month, I’ll make another additional subscription after a long time.
I would never have thought that I’d still be able to subscribe at the initial prices.
Hopefully, the fund unit’s price tag will start with a one when we eventually begin making the first withdrawals.
This is a bit off-topic, but let’s allow it, there’s not much talk in this thread. You probably already know, but Seligson’s LatAm and Russia are both funds that are not actually theirs; the investments are made purely into a partner’s fund. This arrangement is nicely called “advisory”. In reality, it’s more of a fund of funds type solution. This doesn’t mean it can’t be a good investment (despite the fees), but as I understand it, Pyn Elite’s strength is precisely that a Finnish portfolio manager concretely makes the investments themselves in these markets, which are often difficult to access with a reliable portfolio manager, and index returns may not be so good due to the developing nature of the market. (I am not an investor myself; the first subscription is too large for now.)
Oh my goodness, this is so cheap now. Had to mark up more, we’ll be enjoying it by Christmas. It would be interesting to know, for example, if the US market completely collapses, how much would that impact Vietnam and thus PYN..
Securing my own finances is now a priority, so I still haven’t opened a position in PYNI. In a way, it’s a win-win. If I can get a stake cheaper in a month, great. If the stake has risen significantly in a month, then maybe everything is better in the world. Really nice.
Oh boy, how cheap. I first bought in on Feb 28, and I don’t regret it at all. Now I bought a lot more. I’m not ALL IN yet because I’m a greedy opportunist. Diversifying over time.
If you invest in a fund, do you get some kind of credentials where you can track the development of your position, or do you just have to record the subscription dates etc. yourself?
