Buyout Opportunities Seen in Vietnam Imbalances: Southeast Asia – Bloomberg 11-06-13

Salient to Investors:

Avinash Satwalekar at Vietcombank Fund Mgmt, a joint venture of Franklin Templeton Investments said:

  • The time is right for buyout firms to invest in Vietnam as monetary and fiscal policy makers have created a very benign environment for investors and reforms take effect over the next 3 to 5 years.
  • Low valuations, constrained bank lending and an improved corporate landscape creates an opportunity to buy companies before the economy picks up and while the water is murky.
  • His favorite sectors are agriculture, retail, education and food and beverage.
  • Banks are asking for more collateral than some firms can afford and that is where private equity can step in.

Vietnam’s benchmark VN Index is at 12.7 reported earnings, the cheapest equities market in Southeast Asia.

Luke Pais at Ernst & Young said private equity people are still waiting but the number of deals has increased and people are spending more time looking at that market.

Preqin said the 5 transactions this year is the highest number in five years and for biggest amount since at least 2006.

Read the full article at  http://www.bloomberg.com/news/2013-11-06/buyout-opportunities-seen-in-vietnam-imbalances-southeast-asia.html

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Templeton Asset’s Lim Sees BRIC Bargains After Stock Tumble – Bloomberg 06-06-12

Salient to Investors:

EPFR Global says emerging-market equity funds had outflows of $7.8 billion in Q2.

MSCI Emerging Markets index at 9.7 times estimated earnings versus 11.5 for MSCI World Index of developed nations.

Predictions:

Templeton says emerging markets are cheap with much of the bad-news priced-in – finding bargains in China, India, Russia, Thailand, Brazil, and Africa – prefers consumer-related and commodity stocks. 

IMF forecast in April that the BRICs will grow an average 5.5 percent in 2012 versus 1.4 percent for developed countries

Read the full article at http://www.bloomberg.com/news/2012-06-07/templeton-asset-s-lim-sees-bric-bargains-after-stock-tumble.html