We invest in well-managed, undervalued companies with strong fundamentals

Investment Approach

Investment Approach

SAM seeks to invest in well-managed, undervalued companies offering strong fundamentals, which exhibit good or improving corporate governance. Although SAM invests mainly in public equities, the research and due diligence process incorporates a private equity approach whereby SAM takes a very thorough look into the company, its management, liquidity, operations, customers and financials.

 

Investment Process

Investment Process

Our investment team enforces rigorous due diligence before submission to the Independent Investment Committee. In addition to fundamental analysis, the investment team meets one on one with company executives, in order to:

  • Evaluate the strength of management and capability
  • Acquire a high level of comfort for the company’s commitment, competence, and prospects
  • Assess their business practices
  • Examine their office and operations
  • Investigate their corporate governance and outside auditing firm

Equity Market Overview

Equity Market Overview

Vietnam’s benchmark index, the Vietnam Index (VNI), rose 8.1% (in VND) in 2014 and is projected to return to previous levels, which achieved more than 18% growth in 7 of the last 11 years. Economic fundamentals continue to improve as foreign investments boost exports, banks have increased lending at lower rates, rising foreign exchange reserves and low oil prices have kept inflation low. Favorable government policies of interest rate cuts, controlled currency devaluation and amendments allowing direct foreign ownership of real estate have been effective stimulants to the economy.

Vietnam’s stock market has strong investment prospects in the years ahead with forecasted GDP growth over 6%, foreigners being net buyers for nine consecutive years and new opportunities that will arise from the equitization goal of 432 state-owned enterprises (SOEs) by the end of 2016. Amidst this backdrop, SAM’s focus will be on companies with high growth rates, high rates of return and attractive valuations within sectors including real estate, consumer staples and technology sectors.

Real Estate Market Overview

Real Estate Market Overview

The recent real estate market turnaround is the result of renewed macroeconomic stability from the support of the government and State Bank of Vietnam (SBV). The outlook remains positive as infrastructure improvements adding more roads, bridges, highways and the construction of the metro lines in Ho Chi Minh City and Hanoi will drive demand for residential, retail, commercial and industrial projects.

Residential transaction activity has risen due to decreased lending rates, price reductions and creative sales strategies from developers. Sales are projected to substantially increase as beginning in July 2015, the real estate sector will open up to foreign ownership which should attract additional foreign capital. SAM has a bias towards affordable housing and mixed-use developments with projected high rates of return due to favorable government policies.