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

In April, the VN Index advanced +18.4% vs. +20.56% for the TCM Vietnam High Dividend Fund. The rally was broad-based as more than 80% of the stocks were up. However, the recovery was just about half of the losses in previous months, and the VN-Index is still in negative territory of approximately 20% YTD. The worst performing sectors so far this year were Energy -27%, Utilities -26% and Consumer Discretionary -25%.  Also Financials -22% and Real Estate -22% were heavily under pressure. The performance of Financials and Real estate sectors was influenced by outflows of mainly foreign investors. Foreign investors were net sellers during the month with a volume of US$ 304 million, so basically local investors were responsible for the stock market rally. 

After the first round of results overlooking the top 100 stocks by market cap in the first quarter, 43 companies had positive earnings growth, while 57 companies suffered negative profit growth. Next to local investors, we saw an increase in insider buying, usually a good sign of confidence. Strong performers in portfolio were TNG Investment & Trading which gained 61%, after it was hit hard in March. One of our favorite investments within the fishing industry Sao Ta Foods gained 45% and Song Ho Garment also rose 45%. Limited losses were only found in de smaller holdings of the fund. 

The fund invested in a number of large cap companies during the last few weeks. After the crash also heavy weights like Vinamilk and Hoa Phat Group complied with our investment criteria. The TCM Vietnam High Dividend Fund outperformed the benchmark due to the underweight in Financials (banks) and Real Estate. The fund currently holds 31 positions. Consumer Staples and Industrials are the main themes weighting 19.7% and 19.3% 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 2020-04

Factsheets archive
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
Factsheet Vietnam 2019-08
Factsheet Vietnam 2019-07
Factsheet Vietnam 2019-06
Factsheet Vietnam 2019-05
Factsheet Vietnam 2019-04

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)
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)
Semi-annual report 2017
Semi-annual report 2017 (Trustus)
Conflict of interest policy 2020-04 (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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