AFC Uzbekistan Fund valuations as of 30th June 2023:
Estimated weighted harmonic average trailing P/E (only companies with profit):
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4.98x |
Estimated weighted harmonic average P/B: |
0.98x |
Estimated weighted portfolio dividend yield: |
3.93% |
Short and sweet is usually best, as I always try to keep these updates succinct without sounding like a broken record. In light of the fact that there was no significant news regarding Uzbekistan or the broader capital markets during the month, we can simply reconfirm that the Uzbekistan economic transition and growth story continues to move in the direction we have been prognosticating. We are hopeful that some capital markets developments, such as the passing of the capital markets legislation happens in the near future, along with some already announced IPOs of SOEs, but being that this is a frontier market, we are confident they will occur in due course. In the meantime, we continue to add to our existing positions in the “blue chips” of Uzbekistan, which continue to show solid double-digit earnings and equity growth, while several companies continue to pay double-digit dividend yields as well.
In light of a struggling global economy and what I believe is going to be a decade of persistently stubborn inflation, Uzbekistan remains well positioned as a proverbial island of stability and growth due to its vast natural resources (specifically gold), semi-protectionist policies, growing population and low debt levels.
In July, we will have much more to discuss as second-quarter earnings will start trickling in, along with all companies having filed annual general meeting results by that time, which we are looking forward to, along with some potential new dividend announcements for the portfolio.
Further, on 9th July, there will be a presidential election in Uzbekistan, however, this is a mere formality as the President recently called snap elections due to the changes in the constitution which have extended the presidential term from five years to seven. Without any significant opposition we are confident that President Mirziyoyev will win and that business will go on as usual.
Mark your calendar: Second AFC Uzbekistan Fund Investor Tour
We would like to inform you, that the second AFC Uzbekistan Investor Tour will be held from Sunday, 24th September 2023 to Wednesday, 27th September 2023. On Sunday we will organise a sightseeing tour around Tashkent, followed by company visits on Monday and Tuesday, including meetings with government officials and organizations. On Wednesday, we will organise a day trip to Samarkand. Please contact us within the next few days since the tour is filling up quickly.
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