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.

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 VN-Index as a gauge for Vietnam’s stock market rose by 4.8% in September measured in euro. The increase was broad-based as 65% of the stocks were up. The fund also showed a strong performance during the month of September (+5.0%). Since the start of the year the fund outperformed its benchmark by more than 7%. 

It has now been two months since Vietnam reported a “second wave” of Covid infections. The country has done a great job containing the outbreak so far. The government did not impose a strict lockdown this time and because of that domestic retail services recovered by 4.5% in Q3. As a result total retail services (ytd) stayed unchanged compared with the same period of last year.  Currently there are only 50 Covid cases known and investors are confident on government’s effective measures. The General Statistics Office of Vietnam (GSO) announced that Vietnam’s Gross Domestic Product (GDP) rose by “only” 2.6% in Q3. However, in a worldwide context, this performance is quite encouraging. The consumer price index (CPI) increased by 3.0% y/y, which was slightly lower than August’s increase. Prices of hog increased during the last few months, due to the return of the African Swine Flu (ASF). On the other hand prices of transportation were still significantly lower than in the same period of last year (-12.6% y/y). 
The Vietnam Manufacturing Purchasing Managers Index (PMI) recorded 52.2 in September from 45.7 in August, the highest level since July 2019. 
The State Bank of Vietnam (SBV) cut the main interest rates with 25 and 50 basis points. The credit growth is still below the Vietnam state bank’s target, the cut should increase the demand for loans. 
Vietnam’s weight in the MSCI Frontier Index is likely to increase from 12.2% to 30.0% in the MSCI November 2020 update as Kuwait is expected to be upgraded to the Emerging Market status. Estimates show this might lead to a $680mn inflow into Vietnam’s stock market. We expect a positive effect on especially our large cap holdings. 
The fund currently holds 28 positions. Consumer Staples and Industrials are the main themes weighting 21.8% and 20.5% respectively.


Latest factsheet
Factsheet Vietnam 2020-09

Factsheets archive
Factsheet Vietnam 2020-08
Factsheet Vietnam 2020-07
Factsheet Vietnam 2020-06
Factsheet Vietnam 2020-05
Factsheet Vietnam 2020-04
Factsheet Vietnam 2020-03
Factsheet Vietnam 2020-02
Factsheet Vietnam 2020-01
Factsheet Vietnam 2019-12
Factsheet Vietnam 2019-11
Factsheet Vietnam 2019-10
Factsheet Vietnam 2019-09

Additional information
outlook 2020 frontier markets
information sheet fundmanagement
outlook 2019 frontier markets
Citywire AAA ranking 2014-01

Legal information
Key Investor Information Document (only available in Dutch)
Semi-annual report 2020
Semi-annual report 2020 (Trustus)
financial report 2019 (Caceis)
Annual report 2019 (Trustus)
Annual report 2019
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)
Conflict of interest policy 2020-04 (Trustus)
Certificate of Incorporation (Trustus)
Certificate of Incorporation


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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