October 2019 PXP Vietnam Asset Management PXP Vietnam Smaller - PowerPoint PPT Presentation

October 2019

PXP Vietnam Asset Management PXP Vietnam Smaller Companies Fund • Exposure to the highest quality smaller Vietnamese listed-equities for long-term capital appreciation • Fundamental, bottom-up, long-term investment philosophy • Identifying compelling growth and valuation opportunities outside of mainstream coverage through PXP Vietnam’s equity research focus • PXP Vietnam Smaller Companies Fund AUM of US$17.9mn (30 September 2019) Locally based, pure Vietnam focused investment manager • Co-founded in 2002 by Kevin Snowball • First equity specialist investment manager in Vietnam, with total AUM US$98.3mn (30 September 2019) • 19 staff including 7 investment professionals Proven investment strategy • Broad coverage of Vietnamese listed equities • Portfolios comprising the highest quality Vietnamese companies designed to deliver superior long term performance • Multi-year (15+) track record of index and peer group outperformance Favourable macro environment in Vietnam • Refocused monetary policy since 2011 achieving sustainable economic progress • GDP growth of 7.1% in 2018: expect 6.9% in 2019 • Inflation rate below 4%, in line with target • Currency stability reinforced by daily setting of the reference rate • Trade balance improvements driven by FDI into higher value-added production, particularly electronics. Record $7.2 billion trade surplus in 2018 • Vietnam continues to negotiate bi-lateral and multi-party free trade agreements including EU, CPTPP 2

Index 1. Summary 2 2. PXP Vietnam Smaller Companies Fund 4 3. Valuation 5 4. PXP VSCF Top Portfolio Holdings 9 5. PXP Research: The Eyes & Ears 10 6. PXP VSCF Performance 11 7. Peer Group Performance 12 8. PXP Vietnam Asset Management 15 9. Portfolio Manager 18 10. Governance & Risk Management 20 11. Contact & Disclaimer 22

PXP VSCF – Introduction Fund offers unique access to a portfolio of the leading smaller Vietnam-listed companies for long-term capital appreciation. Focus on relatively-undiscovered opportunities in the under-researched smaller companies space (US$20-250 million market cap at time of initial investment). Valuations for selected smaller equities are attractive due to a combination of: • Narrow sell-side research • Insignificant foreign participation • Lack of fundamental consideration by domestic investors; technicals dominate • Lower liquidity means many companies are overlooked The Fund capitalises on PXP Vietnam’s equity research capabilities to invest outside the mainstream where informational inefficiencies and illiquidity create opportunity. We invest in what we strongly believe are the highest quality smaller companies creating a diversified portfolio offering exposure to the next generation of Vietnam’s corporate leaders. 4

Attractive Valuations P/E Ratio P/B ROE Div. Yield 2018 2019 2020 2018 2018 2018 29.9x 24.7x 21.1x 4.1x 13.7% 1.9% VN large cap. (>$250mn) PXP Vietnam Smaller 10.2x 9.3x 8.2x 2.0x 21.5% 4.0% Companies Fund Source: PXP Research, Bloomberg, July 2019 On an NAV weighted basis, PXP VSCF is at a PE & PB discount to the larger companies in the VNI, with a dividend yield of 4.0%. Forecast PXP VSCF portfolio EPS growth of 9.0% in 2019 & 12.0% in 2020. 5

PXP VSCF: Structure, Liquidity & Fees The investment objective of PXP Vietnam Smaller Companies Fund is to seek long-term appreciation of its assets by investing in a portfolio of equity securities of smaller Vietnamese companies with a market capitalisation between US$20mn and US$250mn at the time of initial investment. Structure: Cayman-domiciled mutual fund Inception: 8 December 2015 Min. Subscription: US$100,000 Liquidity: Monthly subscriptions; monthly redemptions with three months’ notice Fees: Management fee 1.5% p.a., performance fee 15% over 8% hurdle with high-water mark Subscription fee: none Redemption fee: 3% within 12 months, 1% thereafter Auditor: Ernst & Young Vietnam Legal Advisor: Harney Westwood & Riegels Custodian: DBS Bank Ltd., Hong Kong Branch; Standard Chartered Bank (Vietnam) Ltd. as sub-custodian Administrator: Apex Fund Services Ltd. Non-Exec Directors: Mr Christopher Vale & Ms. Rachel Provest Investment Manager: PXP Vietnam Asset Management Limited Portfolio Manager: Lawrence Brader Daily NAV estimates, monthly official NAVs & annual audited accounts for purposes of transparency 6

The Smaller Company Universe Vietnam Listed Stocks: $152bn Market Capitalisation (714 stocks) Larger Cap (>$250mn): $133bn MC (62 stocks) Portfolio : Smaller Company Capacity for AUM of Universe ($20mn- Quantitative Filter US$75mn. Optimal $250mn): $16.3bn MC (243 stocks) portfolio 25-30 investee companies Micro Cap (<$20mn): $2.8bn MC (409 stocks) 7 Source: PXPVAM, HOSE & HNX, Bloomberg, July 2019

The Smaller Company Universe • Smaller company universe excludes the large-cap financials and real estate tickers that dominate the VNI, offering instead a diverse range of industries and companies, including many of Vietnam’s sector leaders. • Fundamental bottom-up approach to stock picking is ‘sector - agnostic’ . Maximum of 40% of NAV in any one sector. Sectors: Smaller Co Universe vs VNI Industrials Materials Consumer Staples Real Estate Consumer Discretionary Utilities Financials Healthcare Energy Communication Services Information Technology 0% 5% 10% 15% 20% 25% 30% VSCF Universe VNI 8 Source: Bloomberg & GICS Sector ID, July 2019

The Portfolio Top 10 Holdings Portfolio Breakdown (as at 30 September 2019) Sector Market % of net assets Cap Consumer Discretionary 13.4% Vinh Hoan Corporation (VHC) Catfish Exporter $324m 10.9 Materials 21.6% Utilities 2.2% HCMC Securities Corporation (HCM) Securities Brokerage $320m 9.4 Real Estate 13.1% Dong Hai JSC of Ben Tre (DHC) Packaging Producer $78m 8.9 Power Construction JSC No.1 (PC1) Electrical Infrastructure $138m 7.4 Industrials 23.2% Financials 12.1% Energy 3.5% Consumer Staples Nam Long Group (NLG) Property Developer $299m 6.8 10.9% Ba Ria - Vung Tau House Development (HDC) Property Developer $53m 6.3 Cash 0.05% Phuoc Hoa Rubber (PHR) Rubber/Indust. Parks $356m 6.3 Phu Tai Corporation (PTB) Tile/Furniture $142m 5.5 Saigon Cargo Service Corporation (SCS) Air freight/Logistics $352m 5.1 Taseco Air Services (AST) Airport Retail $129m 4.4 Listed Equities 99.95% NAV-weighted MC: $185m Holdings 24 9 Source: PXPVAM & Bloomberg, 30 September 2019

PXP Research: our eyes & ears - Broad research coverage of Vietnamese listed equities - Full analysis of financial statements and communication of ideas & implications to portfolio managers 10

NAV Performance since inception Calendar NAV Performance Cumulative NAV Performance PXP VSCF VN70 USD PXP VSCF VN70 USD -3.2% -7.9% 1 Year YTD +7.8% +5.7% +8.3% -7.5% -8.6% -14.6% 2 Years 2018 3 Years +10.2% +6.4% 2017 +21.5% +33.5% Inception +35.1% +29.8% 2016 +13.4% +6.9% PXP VSCF Monthly NAV Performance Since Inception Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2015 -0.56% -0.56% 2016 2.82% 2.50% -0.57% 1.73% 3.66% 5.46% 1.52% 2.04% 2.17% -4.44% -5.02% 1.33% 13.44% 2017 0.60% 0.56% 2.98% -0.61% 5.24% 6.70% -2.29% -5.34% 2.80% -2.25% 9.06% 3.07% 21.49% 2018 6.57% -2.96% 4.66% -6.07% -9.16% 0.35% 0.60% 0.69% 8.49% -9.31% 1.77% -2.70% -8.55% 2019 -1.82% 6.24% 0.49% 0.61% 0.15% 0.42% -0.72% 0.97% 1.41% 7.82% • Net of all fees in USD • PXP VSCF Inception 8 December 2015 • PXP & Bloomberg data as at 30 September 2019 11

PXP VSCF: Peer Performance Since Inception 45% 35% 25% 15% 5% Dec 15 Apr 16 Aug 16 Dec 16 Apr 17 Aug 17 Dec 17 Apr 18 Aug 18 Dec 18 Apr 19 Aug 19 -5% PXP VSCF AFC VN SSI SIF Kingsmead Vietnam Legend PXP VSCF: PXP Vietnam Smaller Companies Fund KM VN: Kingsmead Vietnam Fund AFC VN: AFC Vietnam Fund SSI SIF: Andbanc Investments VN Value & Income Source: PXPVAM & Bloomberg, 30 September 2019 12

PXP VSCF: Peer Performances PXP VSCF AFC VN SSI SIF SSI VIG KM VN 10% 5% 0% -5% -10% -15% -20% 1 Year 2 Year 3 Year Legend PXP VSCF: PXP Vietnam Smaller Companies Fund KM VN: Kingsmead Vietnam Fund AFC VN: AFC Vietnam Fund SSI VIG: SSI Vietnam Income & Growth Source: PXPVAM & Bloomberg, 30 September 2019 SSI SIF: Andbanc Investments VN Value & Income 13

Accessing Vietnam’s Smaller Companies Exchange Direct Equity PXP Vietnam Traded Funds Access Smaller Companies Fund • ETFs facilitate easy access and exit but cannot hold the higher quality stocks by virtue of limitations applied regarding size, liquidity and availability to foreigners • Direct equity access is problematic due to the cumbersome application process and low quality of sell-side research with extremely limited stock coverage • Smaller companies universe is under-researched, liquidity discount apparent • PXP Vietnam Asset Management is well-placed to identify opportunities, having arguably the broadest coverage of Vietnamese listed equities in the market 14