Global Frontier
Fund profile
TCM Global Frontier High Dividend Equity invests in stocks listed on the local exchanges of the Frontier Markets Universe. To set up the portfolio the fund will make a selection of countries on the basis of quantitative and qualitative screening. By using these selection criteria the fund will have a diversified portfolio invested in several countries and sectors. The equally weighted portfolio will be re-weighted and re-allocated on a periodically scale. The risk profile is high, due to investment in equities and Frontier Markets.
In principle, the fund will pay out dividend twice a year with an expected dividend yield of approximately 5% per annum.
To achieve its objective, the Fund invests 95% to 100% of its total assets through TCM Investment Funds Luxembourg in units of TCM Global Frontier High Dividend Equity (Lux). The Fund qualifies as feeder-structure.
Sustainability
TCM has entered into an agreement with Sustainalytics for the screening of the portfolios of the TCM equity funds on ESG criteria (UN Global Compact and Controversial Weapons).
The Fund Manager writes
In May Frontier Markets (+2.3%) outperformed Emerging (+0.65%) and Developed Markets (-0.18%). The fund was able to add +1.27% whereby the holdings in Vietnam, Pakistan and Morocco contributed the most to the performance. It was encouraging to see that some of the African stocks were among the winners such as Safaricom (+10.2%)in Kenya), Integrated Diagnostics (+8.3%) in Egypt and Cal Bank (+28.5%) in Ghana.
Safaricom-led consortium dubbed “Global Partnership for Ethiopia” has signed a licence agreement with the Ethiopian Government after being announced as the winner of one of the two telecom licenses that were on offer. Ethiopia is the second-largest country in Africa by population with more than 112 million people. The country is one of the last countries in the world to introduce competition in the telecom industry.
Integrated Diagnostics Holdings (IDH) reported a record-breaking quarterly revenue performance on the back of its coronavirus-related test offering. Revenue for the quarter to March 31 of EGP1.1 billion more than double the EGP500 million seen a year before. IDH has plans to expand into new territories in Africa, the Middle East, and South Asia and highlighted a USD45 million loan secured in May from the International Finance Corporation to finance this. Following the successful quarter, IDH said it would upgrade its guidance for full-year revenue growth of over 20%.
Cal bank announced it will exploit the uptake of digital products to drive growth. Over the past year the bank’s balance sheet grew 12.3% to GHS 7.9bn and ended the year with a capital adequacy ratio of 22.3%, above the revised statutory limit of 11.5%. Operating income grew by 15% and dividend per share increased from 8.9 to 11 pesewas. The bank hopes to secure its operations with a digital-led strategy.
In Ghana 43% of the population is unbanked. In countries such as Pakistan (71%), Morocco (71%), Egypt (67%) and Vietnam (69%) this percentage is even higher. Pakistan is among the most unbanked nations globally in 2021 with about 100 million adults without a bank account. The central bank governor Reza Baqir said last month that he welcomes digital banks in the country to constructively shape the industry.
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Disclaimer
No rights may be derived from this publication. You are referred to the prospectus and Key Investor Information Document for the fund's terms and conditions. These documents may be obtained from the website or the address mentioned below. The manager of the fund has obtained a licence for this fund from the Netherlands Authority for the Financial Markets in accordance with the provisions of the Financial Supervision.
