“Be not afraid of greatness. Some are born great, some achieve greatness, and others have greatness thrust upon them.”

– William Shakespeare - English playwright, poet and actor.

AFC Funds Performance Summary

The AFC Iraq Fund and AFC Uzbekistan Fund both displayed a positive performance in April 2025 despite an extremely volatile and unpredictable month. This once again shows how AFC Funds and Asian frontier markets offer a very strong and attractive diversification tool to sophisticated investors looking to make their portfolios more resilient in an uncertain global economic and geopolitical environment.

AFC Quarterly Webinar Successfully Held on 8^th May 2025

It was an opportune time to conduct our quarterly webinar in this period of economic and geopolitical shifts and update both existing and prospective investors on the outlook for our funds and our markets. If you would like to know more about the outlook for our AFC Funds, you can watch the recording or view the presentation below.

AFC Uzbekistan Fund Investor Day 2025

AFC is organizing its 4^th AFC Uzbekistan tour, bringing existing and prospective investors to experience the reality of Uzbekistan from the ground. We have revised the tour concept and will be hosting a day tour on 27^th May 2025. This will include a half-day tour of Tashkent and a visit to one of the fund’s portfolio companies, followed by dinner. If you are interested in attending, please write us at This email address is being protected from spambots. You need JavaScript enabled to view it. to express your interest, and we will follow up with you.

May 2025 Subscription Cut-Off Date

The next cut-off date for subscriptions for our funds will be 26^th May 2025. If you would like to know more about the subscription process, please get in touch with us at This email address is being protected from spambots. You need JavaScript enabled to view it.

Please find below the managers’ comments on each of our four funds for April 2025.

AFC in the Press

Upcoming AFC Travel

Thomas Hugger, Ruchir Desai, and Peter de Vries are based in Hong Kong, while Andreas Vogelsanger is based in Bangkok, Vicente Nguyen in Ho Chi Minh City, Scott Osheroff in Tashkent, and Ahmed Tabaqchali in Amman, Baghdad, and London. If you have an interest in meeting with our team at their homeports or during their travels, please contact Peter de Vries at This email address is being protected from spambots. You need JavaScript enabled to view it.

AFC Travel

AFC Iraq Fund - Manager Comment

The AFC Iraq Fund Class D shares returned +3.3% in April 2025 with a NAV of USD 2,121.43, outperforming its benchmark, the Rabee Securities RSISX USD Index (RSISUSD index), which gained 3.0% during the month. The fund gained 43.5% in 2024 on the back of a stellar performance in 2023 of +110.4%. The fund is up by 3.4% for the year versus up by 3.3% for the index. Since inception, the fund has gained 112.1% while the RSISUSD index is up by 54.8%, an outperformance of 57.3%. The annualised return since inception of the fund stands at +7.9% p.a.

The market was closed in the first week of the month in observance of the Eid holidays, and so it missed out on the global market mayhem in response to the unveiling of the U.S.’s “reciprocal” tariffs on its trading partners. Once trading resumed, it, to some extent, joined its global peers in being down 1.0% for two days until the announcement of the 90-day suspension of tariffs, after which it ticked upwards to close at an all-time monthly high –although the all-time daily high was mid-month (chart below). The market’s technical picture continues to be positive, and the consolidation of the last few weeks is likely to continue for some time, given the uncertainty over the direction of the world’s economy from the evolving U.S. sanctions. A great deal of uncertainty remains, in which the positives of the 90 day tariff suspension might be replaced by a U.S.-China trade war, or the 90 days will lapse before “beautiful” deals are agreed on.

Rabee Securities U.S. Dollar Equity Index and Daily Turnover

The market’s action in closing at an all-time-high stands in sharp contrast to those of other global markets, which have recouped their “liberation day” losses, yet remain down year to date. Moreover, it is remarkable considering the potential negative effects from Iraq’s leverage to global oil demand. As reasoned last month, irrespective of the evolving U.S. tariff policy, their direct impact on Iraq is almost zero, as oil constitutes almost all of its exports to the U.S., which are exempt from reciprocal tariffs but the impact will be indirect and felt through a lower Iraqi oil price as a consequence of expected lower global demand for oil. On the one hand, this negative is aggravated by increased supply in the form of OPEC+’s aggressive unwinding of its prior production cuts for May and June that probably will be repeated for the next few months as well. On the other hand, the positives are the U.S.’s increasing tough line against Iranian oil (crude and products) exports to China, which would more than offset OPEC+’s increased production, should they be fully implemented, so is the potential decline of high-cost U.S. shale production, as well as the low levels of global oil stocks. However, there is a great deal of uncertainty over how these factors will play out as well as on the direction of the global economy, with the result that oil markets are in unchartered territory and so oil prices continue to head lower, with Brent crude trading at four-year lows. Mirroring these concerns, the IMF, as part of lowering its global growth forecasts for 2025-26 in response to the U.S.’s tariffs, lowered those for oil exporters even more reflecting the added effects of lower oil prices with its forecasts for Iraq lowered more than those of its peers among oil exporters (table below).

IMF’s Iraq’s Growth Forecasts for 2025 - 2026 Versus Growth Figures for 2023 - 2024

The obvious question is: what gives? Especially considering that investors on the Iraq Stock Exchange, whether locals or the handful of foreigners, are fully aware of the effects of lower prices on Iraq and should have reacted negatively without waiting for the oil market’s weird dynamics or for the IMF’s forecast downgrade. The logical answer, as asserted here in the past, most recently in “What Next After Two Gangbuster Years?”, is that Iraq’s economy is undergoing a significant structural transformation, following the country’s decades of conflict, driven by two key dynamics –the cumulative positive effects of the country’s relative stability and the acceleration of banking adoption instead of cash and informality that dominated the economy, that are in the early stages of their transformation of the economy. 

One such manifestation of the increased adoption of banking, last discussed under a year ago in “An Unfolding Structural Economic Transformation”, is the significant growth, year-over-year and month-over-month, in the monthly values of Iraqi Dinar (IQD) transactions through cards (prepaid, debit, and credit) and e-wallets (chart below).  These are at the early stages of the transition to the use of the banking system in the payments for transactions, and while from a small base, the trends are clear and mirror, with a time lag, those that took place elsewhere in emerging and frontier economies. It is this increased adoption of banking that stands out as a positive in the IMF’s updated forecasts, as seen through the figures for broad money growth (table above). While they were lowered from 6.4% to 4.3%, they still show solid growth as a reflection of the increased adoption of banking and the role that banks play in the expansion of the money supply.

Cards and E-Wallet Monthly IQD Transactions

Finally, the market’s positive performance, despite such negatives, should be seen in the context of a market that last peaked in January 2014, followed by a brutal seven-year bear market in which the RSISX USD Index was down 25.4% in 2014, 22.7% in 2015, 17.4% in 2016%, 11.8% in 2017, 15.0% in 2018, 1.3% in 2019, and 5.4% in 2020 –for a cumulative decline of 66.6%; and only surpassed the 2014 peak over a decade later in October 2024.

Nevertheless, the negative effects of lower oil prices on the economy will become a headwind, reversing the positive tailwind of the past two years. Yet the secular positives of the economic transformation should overcome the drag from the cyclical negatives and thus continue to drive the market’s direction. We continue to believe that the upside opportunity for the AFC Iraq Fund will come about as the RSISX USD Index, having surpassed its 2014 peak by 10.3% by the end of April 2025, rallies further, reflecting the powerful dynamics discussed here over the last few months. However, risks remain given Iraq’s recent history of conflict, extreme leverage to volatile oil prices, especially in the current uncertain global environment, as well as the risk that a widening of the current Middle East conflict will not be contained and evolve to destabilise the region.

At the end of April 2025, the AFC Iraq Fund was invested in 8 names and had a cash level of 5.6%. The fund invests in both local and foreign-listed companies that have the majority of their business activities in Iraq. The markets with the largest asset allocation were Iraq (93.2%), Norway (1.1%), and the U.K. (0.1%).

The sectors with the largest allocation of assets were financials (71.6%) and communications (12.9%). The fund's estimated weighted harmonic average trailing 12 months P/E ratio (only companies with profit) was 6.50x, the estimated weighted harmonic average P/B ratio was 1.83x, and the estimated weighted average portfolio dividend yield was 3.74%. The fund’s portfolio carbon footprint is 0.05 tons per USD 1 mn invested.

AFC Uzbekistan Fund - Manager Comment

The AFC Uzbekistan Fund Class F shares returned +0.8% in April 2025 with a NAV of USD 1,235.13, bringing the return since inception (29^th March 2019) to +23.5%.

American Liberation Day Tariffs

While the tariffs imposed by Donald Trump's Liberation Day created widespread chaos and a risk-off sentiment in global financial markets, Uzbekistan remained largely unaffected. Due to its uncorrelated and minimally integrated capital markets, the country did not experience negative repercussions. Although America imposed a minimum 10% tariff on Uzbekistan—where trade is limited and primarily involves some agricultural exports like capers—this situation is not expected to significantly impact the Uzbek economy. In 2024, exports to the U.S. accounted for just 1.18% of Uzbekistan’s total USD 26.9 billion in exports.

Thus, we do not anticipate any significant fallout from the tariffs, as Uzbekistan continues to strengthen its trading ties with the broader New Fertile Crescent. This is the region we termed, stretching from Russia and China, through Central Asia and down into the middle, including India and Pakistan as well. Current developments include plans for Uzbekistan to purchase Chinese J-35A fighter jets and implement Chinese air defence systems, indicating a preference for regional products over Western or American options.

New Presidential Decree on SOE Privatisations

After a lengthy period of stagnation in both capital markets news and equity performance—marked by ongoing downward pressure on trading volumes—there was very positive news in April regarding the country’s long-standing effort to privatise state-owned enterprises (SOEs).
On 21^st April 2025, President Mirziyoyev signed a decree targeting the privatization of 29 SOEs, with plans for 12 of these to be dual-listed on both international and local stock exchanges. While dual-listing on the London Stock Exchange is likely, the strong IPO market in Abu Dhabi and the close relationship between the UAE and Uzbekistan presents another viable listing option. This process is expected to take several years, during which SOEs will focus on enhancing operational efficiency, transparency, and restructuring their boards.

The decree also calls for international roadshows to promote these planned IPOs, reflecting the government's recognition that effective promotion and attractive IPO pricing are essential to stimulating investor interest. Previously, the April 2024 decree on IPO privatisations mandated that only 2% to 5% of shares be sold, which we—and likely many foreign investors—found insufficient to motivate interest in these companies. Thankfully, the current decree has revised the free float to between 10% and 25%. Notably, the two crown jewels of the Uzbek economy, Navoi Gold and Almalyk (a copper mine), were initially slated to issue only 2% of their shares in an international IPO. This share has now been increased to between 10% and 15%, likely depending on demand.

While the privatisation process is expected to progress slowly, we are optimistic as long as advancements continue. This transformation of Uzbekistan's economy is crucial, especially considering that many companies slated for IPOs are still not fully prepared due to their board composition and overall operational efficiency. The government has set a timeline for announcing tender processes for most of these IPOs from 2026 to 2028, with Navoi Gold expected to lead the way in the second half of 2025. This will be followed up by the National Investment Fund which has stakes in 18 companies worth approximately USD 1.6 bn and is managed by international asset manager Franklin Templeton.

We will be following this process closely and hope things can move ahead steadily toward eventual IPOs. The country now has the opportunity to execute this correctly, successfully launching strong companies at attractive prices. This could lead to a transformation of Uzbekistan’s capital markets, kickstarting private sector IPOs, or be a flop of overpriced entities that haven’t completed their transformations which few investors are willing to pay up for. Being that the privatisation process for IPOs has been delayed several times, we are of the mindset that the government does want this to be a success, but in prior announcements it has perhaps been too bold on timelines. Prudence throughout this process should be well rewarded, and should greatly benefit the AFC Uzbekistan Fund.

AFC Uzbekistan Fund Investor Day 2025

We are excited to announce our 4^th AFC Uzbekistan Investor Tour, designed to bring existing and prospective investors to experience Uzbekistan firsthand. We will host a day tour on 27^th May 2025, which will include a half-day tour of Tashkent, a visit to one of the fund’s portfolio companies, followed by a dinner. If you are interested in attending, please email us at This email address is being protected from spambots. You need JavaScript enabled to view it. to express your interest, and we will follow up with you.

At the end of April 2025, the fund was invested in 23 names and held 8.0% in cash. The portfolio was allocated to Uzbekistan (91.9%) and Kyrgyzstan (0.1%). The sectors with the largest allocation of assets were financials (43.2%) and materials (24.6%). The fund's estimated weighted harmonic average trailing 12 months P/E ratio (only companies with profit) was 3.53x, the estimated weighted harmonic average P/B ratio was 0.60x, and the estimated weighted average portfolio dividend yield was 2.61%.

 AFC Asia Frontier Fund - Manager Comment

The AFC Asia Frontier Fund (AAFF) USD A-shares returned −0.6% in April 2025 with a NAV of USD 1,888.51. The fund outperformed the benchmark MSCI Frontier Markets Asia Net Total Return USD Index (−5.4%) and the MSCI Frontier Markets Net Total Return USD Index (−1.2%), and underperformed the MSCI World Net Total Return USD Index (+0.9%). In 2025, the fund delivered a −1.2% return, outperforming the benchmark, which went down by 1.8%. The performance of the AFC Asia Frontier Fund A-shares since inception on 30^th March 2012 now stands at +88.9% versus the benchmark, which is down by 22.4% during the same period, showing an outperformance of +111.3% since inception. The fund’s annualised performance since inception is +5.0%. The broad diversification of the fund’s portfolio has resulted in lower risk with an annualised volatility of 10.4% and a correlation of the fund versus the MSCI World Net Total Return USD Index of 0.48, all based on monthly observations since inception.

Despite the volatility caused in global markets by the announcement of U.S. Reciprocal Tariffs and geopolitical tensions in some parts of our universe, the AFC Asia Frontier Fund reported a relatively stable month. Though April was marked by a lot of news flow which impacted investor sentiment, the fund’s stock selection led to a strong recovery in fund performance in the latter part of the month.

Gains in April were led by Georgia, Mongolia, Iraq, and Uzbekistan, while the main negative impact on performance was due to Vietnam and Pakistan.

The AFC Asia Frontier Fund’s Georgian banks continued to witness a strong rally despite all the global news flow on tariffs and trade as potential geopolitical tailwinds in Central Asia in the form of a compromise in Ukraine is positively impacting the valuation and stock prices of TBC Bank Group and Lion Finance Group, the two Georgian banks held by the fund.

The AFC Asia Frontier Fund’s Georgian Bank Holdings Continue to Re-Rate Upwards

Escalating geopolitical tensions between India and Pakistan led to a correction on the KSE-100 Index in Pakistan. However, expectations are growing that there will potentially be de-escalation in tensions in the near term, and we believe this is the likely outcome going forward.

The State Bank of Pakistan cut its benchmark interest rate by another 100 basis points on 5^th May 2025. This brings the total interest rate reductions to 11% points since June 2024 on the back of improving macroeconomic stability.

The State Bank of Pakistan Reduced Benchmark Interest Rates by 11% Points Since June 2024

The best-performing indexes in the AAFF universe in April were Iraq (+3.0%) and Sri Lanka (−0.1%). The poorest-performing markets were Vietnam (−6.2%) and Bangladesh (−5.8%). The top-performing portfolio stocks this month were a junior copper miner from Mongolia (+100.0%), a Mongolian junior gold miner (+51.9%), a Mongolian leather producer (+29.9%), a technology company with a focus on Asian frontier markets (+15.4%), and a Georgian bank (+14.5%).

In April, the fund reduced existing positions in Mongolia.

At the end of April 2025, the portfolio was invested in 57 companies, 2 funds, and held 4.8% in cash. The two biggest stock positions were a bank in Kazakhstan (4.1%) and a bank in Georgia (4.0%). The countries with the largest asset allocation were Pakistan (17.7%), Sri Lanka (11.9%), and Uzbekistan (11.0%). The sectors with the largest allocation of assets were financials (33.1%) and consumer goods (20.2%). The fund's estimated weighted harmonic average trailing 12 months P/E ratio (only companies with profit) was 6.03x, the estimated weighted harmonic average P/B ratio was 1.18x, and the estimated weighted average portfolio dividend yield was 4.01%. The fund’s portfolio carbon footprint is 0.45 tons per USD 1 mn invested.

AFC Vietnam Fund - Manager Comment

The AFC Vietnam Fund returned −9.1% in April with a NAV of USD 3,070.54, bringing the 2025 return to −11.4% and return since inception to +207.1%. This month, the fund underperformed the benchmark, the Ho Chi Minh City VN Index, which lost 7.7% in USD terms. The fund’s annualised return since inception stands at +10.4% p.a. The broad diversification of the fund’s portfolio resulted in an annualised volatility of 14.82%, a Sharpe ratio of 0.58, and a low correlation of the fund versus the MSCI World Index USD of 0.49, all based on monthly observations since inception.

Market Developments

President Trump’s Trade War

April was a brutal month for global stock markets, largely due to President Donald Trump’s aggressive new tariff policy. On 2^nd April 2025, President Trump announced a sweeping new tariff policy, imposing at least a 10% tariff on all U.S. imports, with China hit the hardest. China, the second-largest exporter to the U.S. behind Mexico, was hit by a 54% tariff, while Vietnam is not far behind with a 46% tariff, Cambodia at 49%, Laos at 48%, and Thailand at 36%. The announcement on 2^nd April 2025 triggered a sharp global sell-off, leading to significant corrections across major stock markets until their lows between 7^th and 9^th April.

Vietnam responded swiftly to U.S. tariff threats by launching high-level diplomatic efforts, including General Secretary To Lam’s direct outreach to President Trump, Deputy Prime Minister Ho Duc Phoc’s mission to Washington, and emergency trade meetings. Although initial proposals were rejected by officials like Peter Navarro, Vietnam’s persistence led to formal trade talks after Trump’s 90-day tariff suspension on 9^th April 2025. While the threat of a 46% tariff remains serious, it does not necessarily signal a recession for Vietnam. Positive signs include the start of official negotiations, a crackdown on trade fraud, and a deal to purchase F-16 fighter jets, reflecting Vietnam’s determination to stabilize relations and protect its export-driven economy.

Is Vietnam Still an Attractive Investment Destination?

Vietnam’s economy has faced numerous challenges in recent years, but continues to show remarkable resilience. Experts remain optimistic about the country's outlook despite the risks of trade disruptions stemming from U.S.-China tensions and the threat of high tariffs on Vietnamese exports. According to Vietcap Securities, GDP growth for 2025 is projected to stay between 5.0% and 5.5%. Meanwhile, BMI (a Fitch Solutions company) recently revised its 2025 GDP growth forecast for Vietnam down from 7.4% to 6.4%, reflecting growing external uncertainties. Nevertheless, analysts emphasize that Vietnam still holds strong fundamental momentum for long-term growth.

Several key factors underpin this positive projection:

1. Vietnam’s Strategic Free Trade Agreements (FTAs)

Vietnam has signed multiple free trade agreements with major economies, including the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP). In addition, Vietnam is a member of the Association of Southeast Asian Nations (ASEAN), and has also established Comprehensive Strategic Partnerships with more than ten countries, such as China, Russia, the U.S., Japan, South Korea, Australia, Indonesia, Singapore, Thailand, the United Arab Emirates, and India. These agreements strengthen Vietnam’s global trade relationships and create significant export opportunities.

Since the EVFTA took effect in 2020, Vietnam’s exports to the EU have grown by an average of 18% per year, particularly in key sectors like electronics, textiles, and agricultural products. Meanwhile, the CPTPP and RCEP have substantially boosted foreign direct investment (FDI), attracting companies from Japan, Australia, and the U.S. seeking cost-effective manufacturing hubs within these trade blocs.

2. Government Investment Plans

The Vietnamese government remains committed to driving economic growth, with public investment projected to exceed 7% of GDP in 2025. This record spending will prioritize infrastructure, education, healthcare, and other essential public services, boosting domestic demand and supporting job creation. By expanding public sector investment, Vietnam aims to sustain growth momentum despite external challenges.

Key initiatives include the North-South Expressway and the ambitious North-South High-Speed Railway project, estimated to cost over USD 60 bn and dramatically enhance national connectivity. Major airport expansions, such as upgrades at Tan Son Nhat International Airport and the new Long Thanh International Airport construction, are also underway to meet rising travel and trade demands.

3. Strong Tourism Recovery

Vietnam's tourism sector is rebounding strongly as global travel resumes. With impressive tourism revenues in 2024, the government is investing in infrastructure to support future growth. The Vietnam National Administration of Tourism (VNAT) has launched targeted campaigns across European, North American, and Asian markets, utilizing initiatives like e-visa programs and visa exemptions for several countries. Iconic destinations like Halong Bay and Phu Quoc Island continue to attract visitors, and the tourism sector is expected to contribute nearly 10% of GDP by 2025.

4. Domestic Consumption Recovery

Domestic consumption in Vietnam is recovering steadily, with growing consumer confidence in the retail, automotive, and housing sectors. The country’s young population and expanding middle class drive strong demand for goods and services. In 2024, retail sales increased by over 8%, fuelled by rising wages and improved sentiment. The real estate market, especially in cities like Hanoi and Ho Chi Minh City, also rebounds with higher property transactions and construction activity.

5. Vietnam’s Low Government Debt-to-GDP Ratio

Vietnam's debt-to-GDP ratio, one of the lowest in the region and provides substantial fiscal space to manage external shocks and maintain financial stability. With a debt-to-GDP ratio of just 33.5% in 2024, well below the government's debt cap of 60%, the government has room to implement stimulus measures and ensure long-term fiscal sustainability, minimizing economic instability risks.

Low Debt Levels Provide Room to Ramp Up Infrastructure Spending

Annual Government Spending for Investment & Development

6. Vietnam’s Stock Market Trades at Attractive Valuations

Despite recent market volatility, history shows that corrections often present attractive investment opportunities. The VN-Index is currently trading at a blended P/E (average over the past four quarters P/E plus the 1-year estimated P/E) of 11.7x, about 25% lower than its average since 2016 and close to the lows seen during major crises. Over the past decade, the VN-Index has demonstrated strong resilience, with a recovery rate of 70–75% and an average return of 16% within 12 months after significant declines. Vietnam’s domestic growth story remains intact, driven by political reforms, infrastructure upgrades, and private sector expansion. It offers promising opportunities, particularly in defensive sectors like consumer staples, energy, IT, and construction materials.

With all the above-mentioned points, Vietnam’s growth outlook for 2025 and beyond remains optimistic. The country benefits from strategic trade agreements, substantial government investment, a recovering tourism sector, and robust domestic consumption—all key drivers of its growth potential. Moreover, Vietnam’s low debt-to-GDP ratio grants it the fiscal flexibility to weather external shocks, ensuring continued economic stability. Its ability to capitalize on its strategic location and infrastructure, positioning itself as a trade hub between the U.S. and China, further strengthens its growth prospects in the years ahead. Vietnam’s resilience and adaptability in the face of global challenges are clear. As the country continues to leverage its existing strengths and explore emerging opportunities, it is well-positioned to sustain its economic momentum and remain a compelling investment destination in the coming years.

Annual General Meeting: LBM

On 19^th April 2025, we attended the Annual General Meeting (AGM) of Lam Dong Mineral and Construction Materials (LBM), our largest position. LBM has been selected as the key supplier of cement and stones for two major high-speed road projects: Dau Giay–Lien Khuong and Chon Thanh–Gia Nghia. At the AGM, the chairman of LBM stated, "The company has been preparing for this infrastructure boom over the last five years. Now is the time for us to begin reaping the benefits." Both of these large-scale projects officially broke ground in April. According to the CEO of LBM, the company expects its revenue for the first quarter to increase by 40%, and he remains confident in achieving the profit target set for 2025.

AGM of Lam Dong Mineral and Construction Materials (LBM)

Annual General Meeting: TNG

On 20^th April 2025, we participated in the Annual General Meeting (AGM) of Thai Nguyen Garment JSC (TNG), our largest export stock position, which President Trump’s tariff policy has significantly impacted. Despite the company's solid business performance, TNG's share price has plummeted, losing 40% from its peak following the announcement of the tariffs. During the AGM, we discussed with the Chairman and CEO of TNG, who expressed strong confidence in achieving their year-end target with a 6% revenue growth, even in the face of the new tariffs.

The CEO shared that TNG has successfully shifted its export focus from the U.S. to Europe, with U.S. revenue dropping from 33% to 26% of total sales. Meanwhile, revenue from Europe has surged from 35% to 60% as of April 2025. The Chairman remains optimistic about achieving at least an 8% growth in net profit in 2025, which would set a new record. Currently, TNG is trading at a price-to-earnings ratio (P/E) of 6x, a price-to-book ratio of (P/B) 1.05x, and an attractive dividend yield of 7%, indicating that the stock is significantly undervalued.

Net Profit of TNG is Expected to Grow 8% in 2025

Agricultural Bank Insurance: ABI

Another significant position in our portfolio, Agricultural Bank Insurance (ABI), has shown impressive growth in the first quarter of 2025. According to ABI’s Q1 report, net revenue and net profit increased by 16% and 15%, respectively. With a P/E of 8x, P/B of 1.2x, and a dividend yield of 7%, ABI is considered one of the most undervalued insurance stocks in the market.

According to VNDirect Securities, ABI’s net profit could increase by more than 30% in 2025, reaching VND 270 bn, signalling a strong recovery from the impact of the YAGI storm last year.

Net Profit of ABI (VND bn)

Vietnam's Flexibility and Strategic Adjustments Amidst Tariff Uncertainty

Vietnam has showcased exceptional flexibility in negotiating with the White House to secure favourable trade terms, adapting swiftly to the evolving situation. Given the unpredictability of President Trump's actions, the fund has responded by actively reducing exposure to export stocks and other sectors vulnerable to high tariffs. In contrast, we have increased our investments in the banking sector and particularly in public infrastructure, which we view as essential for driving sustained economic growth.

In light of global uncertainties, the Vietnamese government has proactively accelerated its public investment program to reinforce its economic foundation. In April, more than 80 major infrastructure projects were launched nationwide, supported by significant capital investment. This initiative is designed to enhance domestic economic resilience, improve connectivity, and create employment opportunities, positioning Vietnam for continued growth despite external challenges.

To further support economic growth, the Vietnamese government has introduced several policies, including:

• Increasing public investment if needed
• Advancing the North-South High-Speed Railway project ahead of schedule
• Potential tax cuts or deferrals to ease businesses’ burden
• The State Bank of Vietnam (SBV) is possibly introducing lending packages with interest rate support for businesses
• Interest rate reductions to stimulate economic activity

With these measures in place, we remain optimistic that Vietnam's economy will continue to achieve positive growth, despite the current external challenges.

At the end of April 2025, the fund’s largest positions were: Lam Dong Minerals and Building Materials (8.5%) – a building material supplier, Agriculture Bank Insurance (7.7%) – an insurance company, Thien Long Group (6.1%) – a manufacturer of office supplies, Dong Hai JSC of Bentre (5.7%) – a packaging manufacturing company, and TNG Investment and Trading JSC (5.4%) – an apparel manufacturer.

The portfolio was invested in 37 names and held 2.3% in cash. The sectors with the largest allocation of assets were consumer (38.3%) and financials (27.8%). The fund's estimated weighted harmonic average trailing 12 months P/E ratio (only companies with profit) was 10.11x, the estimated weighted harmonic average P/B ratio was 1.23x, and the estimated weighted average portfolio dividend yield was 4.59%. The fund’s portfolio carbon footprint is 1.52 tons per USD 1 mn invested.

I hope you have enjoyed reading this newsletter. If you would like any further information, please get in touch with me or my colleagues at This email address is being protected from spambots. You need JavaScript enabled to view it.

With kind regards,

Thomas Hugger
CEO & Fund Manager

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