Vietnam

Fund profile

TCM Vietnam High Dividend Equity is a high dividend equity fund. At least half of the fund capital will be invested in listed shares on the exchanges of Ho Chi Minh City and Hanoi. At the most 20% of the fund can be invested in the Vietnamese OTC market. This depends on the liquidity of this market. The funds investment policy will be aimed at achieving capital growth as well as dividend pay outs. In principle, the fund will pay out dividend once a year with an expected dividend yield of approximately 4% per annum.

The risk profile is high, due to investments being channelled into frontier markets in Vietnam. The relationship between global financial markets and the Vietnamese markets is low, because the latter are less sensitive to international developments. 

To achieve its objective, the Fund invests 95% to 100% of its total assets through TCM Investment Funds Luxembourg in units of TCM Vietnam 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).

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The Fundmanger writes

The Ho Chi Minh Stock Index, Vietnam’s main bourse, increased by 2.3% in September. Vinamilk (VNM) rose 7.5%, contributing about 30% to the index performance. The fund started to build up a position in VNM recently, since the stock complied with our investment criteria and minimum level of dividend yield. Banking stocks were also among the top gainers as this sector rose by 5.5%, contributing to the remaining 70% of the index increase. The strong performance of the banking stocks was supported by both sector- and company-specific news. The State Bank of Vietnam has recently lowered its policy rates by 25 bps, domestic investors interpret this as a positive signal for banking stocks. The TCM Vietnam High Dividend fund showed a positive return of 0.99%, an underperformance versus the benchmark indices that were lifted mainly by the mentioned large cap stocks.

GDP growth in Q3 amounted to 7.3%. This brought the 9 months growth up to 6.98% y/y. The agriculture, forestry and fishery-sectors size to total GDP stayed at less than 14.0% as growth was up by only 2% y/y. The industrial and construction-sector strongly outperformed, growing by 9.3% y/y. Its contribution to total GDP reached 35.8%. The trade, retail and services-sector grew by 6.8% y/y, and contributes 38.7% to the country’s GDP.

According to the General Statistics Office Vietnam’s trade surplus reached $5.9bn during the first 9 months of 2019. Mobile phones, along with textile and garments, and electrical products, continued to be the main export drivers. A staggering number of phones was exported worth $38.6bn or almost 20% of the total export value. Next to this Google also announced to reallocate this year the Pixel Smartphone production from China to Vietnam.

The fund currently holds 35 positions across a number of sectors. Consumer Staples and Consumer Discretionary are the main themes weighting 20.8% and 14.68% respectively. Within these sectors we currently find the most high dividend stocks which meet our criteria. The weighting on sector level depends mainly on the relative attractiveness of a stock/sector versus other stocks/sectors. The fund allocation can therefore deviate strongly from the Vietnamese benchmark indices. 

Downloads

Latest factsheet
Factsheet Vietnam 2019-09

Factsheets archive
Factsheet Vietnam 2019-08
Factsheet Vietnam 2019-07
Factsheet Vietnam 2019-06
Factsheet Vietnam 2019-05
Factsheet Vietnam 2019-04
Factsheet Vietnam 2019-03
Factsheet Vietnam 2019-02
Factsheet Vietnam 2019-01
Factsheet Vietnam 2018-12

Additional information
information sheet fundmanagement
outlook 2019 frontier markets
Citywire AAA ranking 2014-01

Legal information
Key Investor Information Document (only available in Dutch)
Financial report 2018 (Caceis)
Semi-annual report 2019
Semi-annual report 2019 (Trustus)
Annual report 2018 (Trustus)
Annual report 2018
Semi-annual report 2018
Semi-annual report 2018 (Trustus)
Financial Report 2017 (Caceis)
Annual report 2017 (Trustus)
Annual report 2017
Prospectus (only available in Dutch)
Semi-annual report 2017
Financial-Report-2016 (Caceis)
Semi-annual report 2017 (Trustus)
Annual report 2016
Annual report 2016 (Trustus)
Conflict of interest policy 2019-04 (Trustus)
Certificate of Incorporation (Trustus)
Certificate of Incorporation
Licence

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.

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