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CONFIDENTIALAFC Asia Frontier FundSeptember 2013
AFC Vietnam Fund April 2017
2
Most new funds are launched when markets are “hot” and close to their highs
We see opportunities as the market & economy are at the beginning of a new cycle
Viet Capital - Hanoi Index May 2006 – December 2016
AFC Vietnam Fund
AFC Vietnam Fund Launch
TABLE OF CONTENTS
Executive Summary 4
Why Vietnam 5
Investment Strategy 17
AFC Vietnam Fund 20
Fund Performance 21
Directors & Shareholders 23
Awards 28
Contact Information 29
Disclaimer 30
Appendix 31
3AFC Vietnam Fund
EXECUTIVE SUMMARY
Fund Objective
• Capture the value of growth companies in Vietnam; especially in the small to medium sizecompany segment
Opportunity
• Vietnams GDP growth is accelerating again since H2 2013 and is expected to grow at over6% in 2017.
• Banking reform is under way, such as e.g. the resolution for NPL’s
• Strong FDI inflows are helping to transform Vietnam to a higher value addedmanufacturing destination
• Low oil prices are beneficial for Vietnam and are helping to increase consumer spending
• VND - Currency expected to remain stable.
Potential
• We believe to achieve a significant capital appreciation for at least the next 4 - 6 years.
4AFC Vietnam Fund
5
A Land of Opportunities
Valuations
• Vietnam’s overall valuation looks extremely compelling versus its regional peers, but listed“Small/Medium Caps” offer outstanding value
• Reaching the old highs in the next economic and stock market cycle would mean a potentialof several hundred per cent, supported by fundamentals
Growth Prospects
• Very competitive labour costs, but rising individual wealth at CAGR 13.50% over the past 10years
• High foreign remittances of around USD 12bn in 2016
• FDI disbursement grew by 9% and reached USD 15.8bn in 2016
AFC Vietnam Fund
WHY VIETNAM
6
Strong Fundamentals will Support Growth
➢ Sustainable GDP Growth
• GDP is accelerating again at 6.2% 2016, after declining from 8.5% (2007) to 5% (2012)
➢ Competitive Labour Costs
• Low wages with increasing productivity and improvements in human capital
➢ Inflation under Control
• The government managed to keep inflation below 5% at 4.7% in 2016 (recent highs in2011 at 18.7% and in 2008 at 23.1%)
➢ Interest Rates Came Down
• Average lending rate came down from over 20% (2011) to 7.75% (2016)
➢ Improving Trade Balance
• Trade balance improved from USD -18bn (2008) to USD +2.6bn (2016)
➢ Foreign Reserves Increasing
• Foreign reserves increased from USD 12.5bn (2010) to approx. USD 41bn 2016
➢ Currency expected to remain stable versus USD
AFC Vietnam Fund
WHY VIETNAM
7AFC Vietnam Fund
Competitive Labour Costs
Worldbank
WHY VIETNAM
8.48
4.63
3.87
1.25 1.21 1.19
0.730.56
0.30 0.30
Japan South Korea Hong Kong Malaysia Thailand China Philippines Indonesia Vietnam Laos
Minimum Hourly Wage (USD)
SingaporeHong Kong
Korea Germany
Switzerland
Vietnam
United States
ThailandIndonesia
300
350
400
450
500
550
600
1,000 10,000 100,000
Ave
rage
PIS
A S
core
GDP per Capita (current USD)
PISA Score Log. (PISA Score )
8AFC Vietnam Fund
Increasingly Educated Population
OECD - PISA 2015 – assessed the competencies of 15 year olds in 72 countries / GDP per Capita 2015 (current USD); source: Worldbank
WHY VIETNAM
552 533 529 524 519 508 506 502 502 500 496 496 492 488 485 483415 395
Sin
gap
ore
Ho
ng
Ko
ng
Jap
an
Can
ada
Ko
rea
Ger
man
y
Swit
zerl
and
Vie
tnam
Au
stra
lia
Un
ite
d K
ingd
om
Fran
ce
Swed
en
Au
stri
a
Un
ite
d S
tate
s
Ital
y
Luxe
mb
ou
rg
Thai
lan
d
Ind
on
esi
a
PISA 2015 - mean score of Mathematics, Reading & Science
Pisa Score / GDP per Capita (current USD)
Vietnam Consumer Confidence
9AFC Vietnam Fund
WHY VIETNAM
Bloomberg / ANZ Roy Morgan / AFC
91.0
61.258.4
98.2
52.0
57.0
62.0
67.0
72.0
77.0
82.0
87.0
92.0
97.0
Dec
-03
Jun
-04
Dec
-04
Jun
-05
Dec
-05
Jun
-06
Dec
-06
Jun
-07
Dec
-07
Jun
-08
Dec
-08
Jun
-09
Dec
-09
Jun
-10
Dec
-10
Jun
-11
Dec
-11
Jun
-12
Dec
-12
Jun
-13
Dec
-13
Jun
-14
Dec
-14
Jun
-15
Dec
-15
Vietnam
Indonesia
China
Hong Kong
Singapore
New Zealand
Australia
India
Thailand
Taiwan
South Korea
10
Vietnam is implementing several Free Trade Agreements, and is negotiating
others, such as the Regional Comprehensive Economic Partnership
WHY VIETNAM
WTO Center
AFC Vietnam Fund
15.8
27.8
0.0
5.0
10.0
15.0
20.0
25.0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
FDI & Remittances 2005 - 2016
FDI Disbursements Overseas Remittances Total
Strong FDI Disbursements and Overseas Remittances
11AFC Vietnam Fund
WHY VIETNAM
General Statistics Office of Vietnam
USD bn
• The disbursement of foreign directinvestment (FDI) last year reached a recordlevel with USD 15.8 billion. This achievementis expected to reiterate in 2017
• Vietnam received about USD 12bn worth ofinward remittances in 2016 from 5 millionVietnamese residing in 103 countries aroundthe world, most of which has been investedin production and business activities
12
Compelling Valuations (April 2017)
AFC Vietnam Fund
Bloomberg
WHY VIETNAM
P/E P/BDividend Yield
(%)
AFC Vietnam Fund 9.88 1.6 6.9
Indonesia 25.3 2.5 1.6
Philippines 21.1 2.5 1.6
Thailand 17.0 1.9 3.0
Malaysia 17.1 1.7 3.2
Singapore 13.1 1.7 3.7
Vietnam - Ho Chi Minh 17.4 2.2 2.9
Vietnam - Hanoi 11.3 1.0 3.1
6.4% 6.2%5.2% 5.4%
6.0%6.7%
6.2% 6.5%
2010 2011 2012 2013 2014 2015 2016 2017F
Yearly GDP Growth
Agriculture, forestry, and fishery Industry & Construction Services Yearly GDP Growth
4.74%
8.50%
7.00%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Vietnam Interest Rates and Inflation
CPI (y-o-y)
Lending rate
Deposit rate
13AFC Vietnam Fund
GDP Growth - Inflation under control
Worldbank / General Statistics Office of Vietnam
WHY VIETNAM
-10.9
-12.6
-9.8
0.8 0.92.0
-3.2
2.5
2009 2010 2011 2012 2013 2014 2015 2016
Trade Balance (USD bn)
50.9% 49.0% 50.0% 53.2%56.8%
62.2% 63.8% 64.4%
28.3% 27.8%27.1% 26.4% 25.8% 28.9% 30.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
0
20
40
60
80
100
120
140
2010 2011 2012 2013 2014 2015e 2016e 2017e
Public Debts (Foreign & Domestic) in % of GDP
Foreign Debt Domestic Debt Public Debt / GDP Foreign Debt / GDP
14AFC Vietnam Fund
Increasing Foreign Reserves will Support Currency & Balance of Payments
Worldbank
WHY VIETNAM
-6.60
-4.30
-0.60
7.00
8.80
6.00
1.00
2009 2010 2011 2012 2013 2014 2015
Current Account Balance (USD bn)
90% 50% 38% 36% 56% 71% 75% 61% 66%
24
1713 14
24
3236 34
41
0
10
20
30
40
50
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 2012 2013 2014 2015 2016
Foreign Reserves in % of Foreign Debts
Foreign Reserves in % of Foreign Debt Foreign Reserves (USD bn)
15
Improving Business Environment
Government to Support Economic Recovery
• Relaxation of Foreign Ownership Limits, allowing foreign investors to buy up to 100 percentof stocks from companies in non-strategic sectors
• Relaxation of the rules on foreign ownership of property
• Tax Cuts for Individuals and Corporates
• Stimulus Packages for various Industry Sectors
• Restructuring of SOE’s (State Owned Enterprises)
• Improving Banking Regulatory Framework
• Better Supervision and Severe Punishment of Banking Misconduct
• Lower Lending Rates
• To keep NPL ratio below 3% and credit growth target at 18% - 20% range
• Visa exemption for foreign visitors
AFC Vietnam Fund
WHY VIETNAM
16
Improving Business Environment
➢ Strong Foreign Investments into Manufacturing (Samsung alone ~USD 15bn)
➢ Key Sectors: Electronics, Textile and Energy
➢ TPP, ASEAN and other Free Trade Agreements will support Economy
➢ Political Stability
➢ Main Risks
• External economic or political shocks
• Vietnam will need to continue to drive economic reforms and also improvements inlabour productivity will need to keep the same pace
AFC Vietnam Fund
WHY VIETNAM
INVESTMENT STRATEGY
Value Based Bottom Up Stock Selection
• In-house and third party research to identify undervalued companies
• Self-developed Fundamental-Quantitative model
• Company visits
Risk Mitigation
• In-depth due diligence of investment opportunities
• The fund is well diversified and typically invests in 60 to 90 stocks across various sectors
• Investment limit per position max 9% with top-slicing at 19%
• Top 5 holdings have a weighting of around 11%
Cash
• Not fully invested in uncertain times and/or excessive valuations
• Holding cash will allow the fund to take advantage of opportunistic investments when theyarise (momentum / news driven)
17AFC Vietnam Fund
INVESTMENT STRATEGY
18AFC Vietnam Fund
Fundamental with
quantitative overlay
Stock Analysis
Dynamic Optimisation
Process
Portfolio Construction
Managing Risks; aligning
them with Investment Conviction
Portfolio Monitoring
Investment Process
• Our stock selection process is driven by a fundamental approach, to which the teamapplies a quantitative overlay in a controlled manner. Our core investment process doesnot target any particular style bias and aims to outperform in most market environments.
INVESTMENT STRATEGY
Example of Typical Equity Investments
Portfolio Sector Weightings as of 31st March 2017
19AFC Vietnam Fund
Industrials 25.2% Healthcare 4.6%
Consumer Discretionary 18.4% Utilities 3.8%
Materials 14.4% Energy 3.6%
Consumer Staples 13.1% Communications 3.5%
Financials 7.8% Cash 5.6%
Market Cap USD (m)
P/E P/B Div. Yield Pay Out Ratio
Sector
Agriculture Bank Insurance 35 8.5 1.1 5.7% 56% Financials
Dinh Vu Port Inv. & Development 97 8.6 2.6 5.7% 48% Industrials
Vietnam Fumigation 43 6.7 1.4 6.3% 46% Agri Chemicals
Bao Viet Securities 48 7.9 0.8 0.0% 0.0% Financials
Petro Vietnam Technical Services 564 6.7 1.3 4.4% 29% Energy
20AFC Vietnam Fund
AFC VIETNAM FUND
Legal Structure: Open End
Style: Value / Growth
Domicile: Cayman Islands
Initial Minimum Investment: USD 10,000 / USD 1,000 subsequent purchases
Launch Date: 23 December 2013
Subscription Frequency: Monthly, 5 business days before end of month
Redemption: Monthly, 60 days prior notice
Fees: Management: 1.8% p.a. of NAV
Performance: 12.5% p.a. of NAV appreciation
High Water Mark: Yes (performance fee only applies to net profits)
Auditor: Ernst and Young, Hong Kong
Legal Advisor: Ogier, Hong Kong
Custodian: Viet Capital Securities, Ho Chi Minh
Fund Administrator: Custom House, Singapore
Investment Manager: Asia Frontier Capital (Vietnam) Ltd., Cayman Islands
Security Number / Ticker: ISIN: KYG0133A1673 / Valor: 23095153 / AFCVIET KY
21AFC Vietnam Fund
FUND PERFORMANCE
NAV as of 31st March 2017
NAV USD 1,718.10
Since Inception +71.81%
Inception Date 23/12/2013
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2013 USD +2.37% +2.37%
2014 USD +8.75% +4.50% +2.18% −4.65% −0.32% +1.45% +1.86% +5.49% +3.87% +2.83% +2.50% +0.60% +32.50%
2015 USD +0.44% +1.76% −0.96% +1.93% −0.48% +0.06% +0.22% −4.57% +1.18% +6.90% −1.82% +0.25% +4.62%
2016 USD −0.10% +3.30% +1.28% +3.17% +1.40% +4.97% +3.00% +0.13% +0.11% −1.83% +0.88% −1.76% +15.29%
2017 USD +1.90% +1.10% +1.94% +5.02%
Monthly Performance (Net) - AFC Vietnam Fund
22AFC Vietnam Fund
FUND PERFORMANCE
Monthly Performance (Net) - AFC Vietnam Fund
900
1000
1100
1200
1300
1400
1500
1600
1700
AFC Vietnam Fund USD (Net) VN Index (USD)
23AFC Vietnam Fund
Vicente Nguyen, Fund Manager of AFC Vietnam Fund, has over10 years of experience in finance. Prior to joining Asia Frontier Capital(Vietnam) Ltd., Vicente was the CEO of HVS Securities, a brokeragecompany in HCMC. He also spent several years at the HCMC office ofMirae Asset Group, a global investment management firm, as anInvestment Manager.
Vicente holds an MBA from Ecole de Management Strasbourg in Franceand a Bachelor diploma in audit and accounting from Ho Chi Minh CityUniversity of Economy, Vietnam.
SHAREHOLDER OF ASIA FRONTIER CAPITAL (VIETNAM) LTD.
24AFC Vietnam Fund
Andreas Vogelsanger, CEO / Head Marketing of AFC Vietnam
Fund, has over 25 years of wide-ranging experience with leadinginstitutions in the finance industry. Prior to joining AFC Vietnam FundAndreas was a Founding Partner and Chairman of a small corporatefinance boutique in Bangkok and he worked for top-level investmentbanks, hedge funds and private banks in Zurich, Geneva, London, HongKong and Singapore. He is passionate in finding the best value solutionsfor clients in tailoring an optimal investment proposition.
Andreas was awarded an AMP diploma from Wharton Business School,University of Pennsylvania and he also holds CEFA (Certified EuropeanFinancial Analyst and Portfolio Manager) and FRM (Financial RiskManager) diplomas.
DIRECTOR & SHAREHOLDER OF ASIA FRONTIER CAPITAL (VIETNAM) LTD.
25AFC Vietnam Fund
Thomas Hugger, COO of AFC Vietnam Fund and Founder of
Asia Frontier Capital, has spent 27 years in private banking where hespecialized in managing portfolios of listed and unlisted equities. He hasbeen investing in Asian and African Frontier Markets since 1993. He is theformer Managing Partner, CFO & COO of Leopard Capital; and waspreviously a Managing Director and Head of Portfolio Management at LGTBank in Hong Kong. He also held senior investment positions at Bank JuliusBaer in Zurich and Hong Kong. Mr. Hugger was the founding shareholderof one of the largest brokerage companies in Bangladesh. He is also aCertified Financial Investment Analyst (CFIA) and Investment Adviser(Switzerland) and a Certified European Federation of Financial AnalystsSocieties (EFFAS) Financial Analyst.
DIRECTOR OF ASIA FRONTIER CAPITAL (VIETNAM) LTD.
Our Team
Thomas Hugger, CEO and Fund Manager,has spent 27 years in private banking and hasbeen investing in Asian and African FrontierMarkets since 1993. He is the formerManaging Partner, CFO & COO of LeopardCapital; and was previously a ManagingDirector and Head of Portfolio Managementat LGT Bank in Hong Kong. Mr. Hugger wasthe founding shareholder of one of thelargest brokerage companies in Bangladesh.He is also a Certified Financial InvestmentAnalyst (CFIA) and Investment Adviser(Switzerland) and a Certified EuropeanFederation of Financial Analysts Societies(EFFAS) Financial Analyst.
Lord Fraser of Corriegarth, Director, is agraduate of St John's College, Oxford afterwhich he held numerous posts in the financialsector both in the City of London andelsewhere. He has previously held positions as;CEO of Baring Securities in the UK, Chairman ofEquity Partners Ltd., a Bangladesh investmentbank, as well as Chairman of Bridge Securities,a quoted Korean company, amongst otherposts. At present he is a global investor basedin London.
Dr. Marc Faber, is CEO, investment advisor
and fund manager of Marc Faber Limited. He
is the publisher of a widely read monthly
investment newsletter The Gloom, Boom
and Doom report which highlights global
investment opportunities. Dr. Faber is
respected around the world for his market
forecasts over the past three decades.
26
SHAREHOLDERS OF ASIA FRONTIER CAPITAL LIMITED
AFC Vietnam Fund
AWARDS
27AFC Vietnam Fund
28
ASIA FRONTIER CAPITAL (Vietnam) LTD.
c/o Intertrust Cayman Islands190 Elgin AvenueGeorge TownGrand Cayman KY1-9007Cayman IslandsTel: +852 3904 1015Fax: +852 3904 1017Email: [email protected]
Investment Enquiries:Andreas VogelsangerMobile: +66 84435 7472Email: [email protected]: andreasvogelsanger
AFC Vietnam Fund
CONTACT INFORMATION
*The representative of the Fund in Switzerland is Hugo Fund Services SA, 6 Cours de Rive, 1204 Geneva. The distribution of Sharesin Switzerland must exclusively be made to qualified investors. The place of performance and jurisdiction for Shares in the Funddistributed in Switzerland are at the registered office of the Representative.
29
DISCLAIMER
This Presentation is presented solely for purposes of discussion to assist prospective investors in determining whether they have a preliminary interest in the investment opportunity described herein. Under no circumstances is itto be used or considered as an offer to sell, or a solicitation of an offer to buy, any security or other interest in AFC Vietnam Fund, AFC Asia Frontier Fund, AFC Umbrella Fund or any other fund related thereto (the “Fund”). Offersand sales of interests in the Fund will not be registered under the laws of any jurisdiction and will be made solely to qualified investors under all applicable laws. Potential investors must read the entire Offering Memorandumdelivered by the Fund and the disclosure in this Subscription Agreement. Nothing contained herein shall be deemed to be binding against, or to create any obligations or commitment on the part of, any potential investor or theAsia Frontier Capital (the “Fund Sponsors”). The Fund Sponsors reserve the right, in their sole and absolute discretion with or without notice, to alter the terms or conditions of this Presentation and the Fund and/or to alter orterminate the potential investment opportunity described herein. Potential investors are not to construe this Presentation as investment, legal or tax advice. Prior to making any potential investment, potential investors shouldconsult with their own legal, investment, accounting, regulatory, tax and other advisors to determine the consequences of the potential investment opportunity described herein and to arrive at an independent evaluation ofsuch potential investment opportunity.
By accepting this Presentation, the recipient agrees not to copy, distribute, discuss or otherwise disclose this Presentation or the contents hereof (including the potential investment opportunity described) or any other relatedinformation provided by the Fund Sponsors or by its agents to any person other than employees of recipient evaluating this potential investment opportunity on recipient’s behalf without the prior written consent of the FundSponsors.
While the information contained herein has been obtained from various sources which the Fund Sponsors believe, but does not guarantee, to be reliable, the Fund Sponsors do not represent that it is accurate or complete and itshould not be relied upon as such. No person has been authorized to give any information or make any representation or warranty regarding the subject matter hereof, either express or implied, and, if given or made in thisPresentation, in other materials or verbally, such information, representation or warranty cannot and should not be relied upon nor is any representation or warranty made as to the accuracy, content, suitability or completenessof the information, analysis or conclusions or any information furnished in connection herewith contained in this Presentation and it is not to be relied upon as a substitute for independent review of the underlying documents,available due diligence information and such other information as prospective investors may deem appropriate or prudent to review. The Fund Sponsors, their agents, their respective affiliates, and each of their respectiveshareholders, members, officers, directors, managers, employees, counsel, advisors, consultants and agents (“Representatives”), expressly disclaim any and all liability for express or implied representations or warranties thatmay be contained in, or for omissions from or inaccuracies in, this Presentation or any other oral or written communication transmitted or made available to a prospective investor or its Representatives. Without limiting thegenerality of the foregoing, nothing contained herein is or shall be relied upon as a promise or representation as to any matter, including, without limitation, the future performance of the potential investment opportunitydescribed herein. None of the Fund Sponsors, their agents, or their respective Representatives is under any obligation to correct any inaccuracies or omissions in this Presentation. Each prospective investor will have the soleresponsibility for verifying the accuracy of all information furnished in this Presentation and in any other due diligence information furnished to a prospective investor, and each prospective investor shall have the soleresponsibility for determining the value of the potential investment based on assumptions said prospective investor believes to be reasonable. Representatives will from time to time have long or short positions in, act asprincipal in, and buy or sell, the securities, referred to in this document. There shall be no recourse against the Fund Sponsors or any of their Representatives in the event of any errors or omissions in the information furnished,the methodology used, the calculations of values or conclusions. Without limiting the generality of the foregoing, any historical information or information based on past performance included herein is for informationalpurposes only, has inherent limitations and is not intended to be a representation, warranty or guarantee of future performance. All of the information presented herein is subject to change without notice. Actual returns topotential investors may be lower than the figures shown herein. Projected performance data shown constitutes “forward-looking information” which is based on numerous assumptions and is speculative in nature. Actual resultsmay vary significantly from the values and rates of return projected herein. There can no assurance that the Fund will realize its rate of return objectives or return of investors’ capital. Potential investors should have the financialability and willingness to accept the risks (including without limitation the risk of loss and lack of liquidity) characteristic of investments in entities such as the Fund.
AN INVESTMENT IN THE FUND WILL NOT BE APPROPRIATE FOR ALL INVESTORS. INTERESTS IN THE FUND WILL INVOLVE A HIGH DEGREE OF RISK AND ARE INTENDED FOR SALE ONLY TO SOPHISTICATED INVESTORS WHO ARECAPABLE OF UNDERSTANDING AND ASSUMING THE RISKS INVOLVED. INVESTORS MAY LOSE ALL OR SUBSTANTIALLY ALL OF THEIR INVESTMENT. THE INTERESTS IN THE FUND HAVE NOT BEEN REGISTERED UNDER THE U.S.SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE APPLICABLE SECURITIES LAWS OF ANY US. STATE OR ANY NON-U.S. JURISDICTION, AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROMTHE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY SUCH APPLICABLE LAWS. INTERESTS IN THE FUND HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE US. SECURITIES AND EXCHANGE COMMISSION OR BYTHE SECURITIES REGULATORY AUTHORITY OF ANY STATE OR ANY OTHER RELEVANT JURISDICTION, NOR HAS ANY OTHER AUTHORITY OR COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS MEMORANDUM. ANYREPRESENTATION TO THE CONTRARY IS UNLAWFUL.
*The representative of the Fund in Switzerland is Hugo Fund Services SA, 6 Cours de Rive, 1204 Geneva. The distribution of Shares in Switzerland must exclusively be made to qualified investors. The place of performance andjurisdiction for Shares in the Fund distributed in Switzerland are at the registered office of the Representative.
** The AFV Vietnam Fund is registered for sale to investors in Japan, Switzerland (qualified investors), Hong Kong & UK (professional investors), Singapore (accredited investors) and USA (accredited investors and qualifiedpurchasers).
*** By accessing information contained herein, users are deemed to be representing and warranting that they are either a Hong Kong Professional Investor or are observing the applicable laws and regulations of their relevantjurisdictions.
AFC Vietnam Fund
30
Appendix
AFC Vietnam Fund
31AFC Vietnam Fund
AFC Umbrella Fund (non US), Cayman Islands *
AFC Vietnam Fund
AFC VF Ltd. ****
Investment Firm
Viet Capital Securities
Custodian
Ernst & Young Hong Kong
Auditor
Custom House, Singapore
Fund Administrator
Ogier Hong Kong
Legal Advisor
Asia Frontier Capital (Vietnam)Ltd. **
Investment Manager
Asia Frontier Investments Ltd. (licensed by SFC Hong Kong)***
Investment Advisor
* Directors: Thomas Hugger, Andrew Fraser, Heinrich Looser
** Directors: Thomas Hugger, Andreas Vogelsanger
*** Directors: Thomas Hugger, Peter de Vries
**** Directors: Thomas Hugger, Andreas Vogelsanger
AFC VIETNAM FUND
32
Vietnam’s Low Correlation to Global Markets offers significant Diversification Benefits
WHY VIETNAM
Bloomberg . Based on 10 years monthly data
AFC Vietnam Fund
0.350.42
0.720.82
0.87
VH Index(Hanoi)
VN Index (HoChi Minh)
MSCI FrontierMarkets
MSCI BRIC MSCIEmergingMarkets
Correlation with the MSCI World Index
33AFC Vietnam Fund
Low Market Cap/GDP relative to Asian Markets
Worldbank 2014
WHY VIETNAM
29%
39%
72% 76% 78%83%
91%
107%112%
207%
Vietnam Indonesia India China Australia Philippines Thailand Japan Malaysia Singapore
Market Cap in % of GDP
34AFC Vietnam Fund
Stable Political Environment
WHY VIETNAM
93
82
61
54
4944
2725
2117 16
11
World Bank 2015 Political Stability Ranking
195 245
342
455
642696 702
679 663 658 676
14
32
13
34
38
26
37
45
5358
72
0
100
200
300
400
500
600
700
800
0
80
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Number of listed companies HCMC & Hanoi market cap (USD bn)
35AFC Vietnam Fund
Stock Market Information
Bloomberg
WHY VIETNAM
Banking/Insurance 27.3%
F&B 14.5%
Real estate 11.5%
Construction 11.3%
Utilities 5.6%
Oil & Gas 3.6%
Construction material 3.5%
Manufacturing 3.5%
Transportation 3.1%
Steel 2.9%
Pharmaceutical/ Chemicals 2.3%
Securities 2.1%
Mining 1.8%
Plastic/package 1.7%
Information Technology 1.3%
Commerce 1.0%
Seafood 0.9%
Tourism 0.9%
Rubber 0.8%
Education 0.2%
Sector Breakdown Dec 2016
36AFC Vietnam Fund
Viet Capital - HCMC Index July 2000 – Dec 2016
Ho Chi Minh Index
WHY VIETNAM
37AFC Vietnam Fund
Worldbank
GDP per Capita Accelerating
WHY VIETNAM
Worldbank - GDP per capita (current USD)
230288 337 361 361 374 402 416 441
492607
699797
919
1,1651,232
1,334
1,543
1,755
1,909
2,0522,111
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
38AFC Vietnam Fund
Regional GDP per Capita (current USD)
World Bank 2015
WHY VIETNAM
GDP per
Capita (USD)Population (m)
Singapore 52,889 6
Malaysia 9,768 30
China 8,028 1,371
Thailand 5,815 68
Indonesia 3,346 258
Philippines 2,904 101
Vietnam 2,111 92
Myanmar 1,161 54
Cambodia 1,159 16
Shift of Production Base from China to Vietnam
39AFC Vietnam Fund
VIETNAM
40AFC Vietnam Fund
VIETNAM
www.transparency.org/cpi
21
22
25
25
25
30
31
35
36
37
37
38
38
50
56
62
75
75
79
85
0 10 20 30 40 50 60 70 80 90
Cambodia (150)
Myanmar (147)
Laos (139)
Bangladesh (139)
Papua New Guinea (139)
Pakistan (117)
Vietnam (112)
Philippines (95)
Indonesia (88)
China (83)
Sri Lanka (83)
Thailand (76)
India (76)
Malaysia (54)
South Korea (37)
Taiwan (30)
Hong Kong (18)
Japan (18)
Australia (13)
Singapore (8)
Corruption Perceptions Index 2015
