Loving it long time

Peter Ryder is hardcore. He chugs agent orange with his kool-aid in the morning to wash down the mountain yak he had for breakfast. His skin richly tanned from working in the trenches, he believes in Asia so much that he not only invests there, he lives there. Who are you going to trust to invest in Asia - This guy or that pale and pasty asset manager investing Asian ETF money into Australia?

Why does an Asian ETF invest in Australia? Are the pickings among us gooks so slim that we are investing in a continent that has a growth rate of 2.7%? I think its because the prospectus are in English as opposed to Vietnamese.

I love Vietnam, the food is good, the women beautiful, and it has one war with the West that we didn’t lose! Now granted there are not as many stocks on the Vietnamese stock to actually put in a singular ETF but it should at least be part of the portfolio. If nothing else a good Asian ETF should incorporate some Vietnamese corporate bonds. While credit risk is still a little shaky, at least there’s little political risk unlike say a war zone like Sri Lanka.

Vietnam Shipbuilding Industry Corp (VINASHIN) has borrowed, to date, $4.5 billion for an average life of 10 years at an average coupon of 10%. Vietnam Electricity Construction Joint Stock Corp took out a 5 year issue for 10.15%.

There are lots of good issues from solid companies that would provide healthy yields for ETF dividends. It seems strange that we are investing in Asia only through equity when there is so much debt that can be had for solid risk adjustments.

Plus if nothing else, you gotta love a country that is this enterprising:

‘…investors must maintain constant vigilance, as Ryder found while clearing land for a golf course at China Beach. Regulations require a payment of about $2 for every tree cut down or removed. The rule led to a flurry of planting by locals, some of whom stuck large branches into the ground hoping to pass them off as bona fide trees deserving compensation. Ryder greets such antics with a philosophical shrug: It would take something far worse to drive him from his adopted country. "The only way I'm leaving this place," he says, "is feet first.”’