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 rose strongly by 6.3% in May, in comparison the TCM Vietnam High Dividend Fund rose 4.2%. Vietnam continues to be one of the best performing markets this year. The positive performance of the VN-Index was largely driven by financials, with a 35% weight within the VN-Index the sector’s performance of 16% had a lot of impact. Q1/2021 earnings proved to be strong as Banks aggregated net profits were up by more than 76%. Next to the banking sector also the materials sector, led by steel companies accounted for a large part of the VN -Index increase.
Since the TCM Vietnam High Dividend Fund has a underweighted position in Banks, the performance lagged this month. On the portfolio level we saw most of our holdings reporting better than expected Q1 figures. Given the P/E ratio of 11.7, we expect to see some more upside potential the coming months.  
Foreign investors were net-sellers again in May, leading to a total net outflow of $1.1bn since the start of the year. Other regional markets such as Thailand (-$2.2bn), the Philippines (-$1.5bn), and Malaysia (-$0.8bn) were also confronted with net selling foreign investors. Despite this, the local investors remain the most important factor to guide the markets higher, as they accounted for over 85% of trading in May.
Although markets rose, Vietnam experienced a fourth wave of new Covid cases (+4906). Again the government stepped in and closed down activities in the areas where the concentration of cases was located. The Government announced that 110 million vaccines would be available in 2021. Next to these Pfizer en AstraZeneca vaccines, also local producer and developer NanoCovac is close to introducing its vaccine on the market. Production is expected to start around September this year.
The Consumer Price Index (CPI) rose by 2.9%, due to rising costs of transportation and construction materials. Part of the rise can be attributed to the low cost base, during the Covid crisis a year ago.
The fund currently holds 32 positions. Industrials and Consumer Staples are the main themes weighting 20.6% and 16.3% 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. 


Latest factsheet
Factsheet Vietnam 2021-05

Factsheets archive
Factsheet Vietnam 2021-04
Factsheet Vietnam 2021-03
Factsheet Vietnam 2021-02
Factsheet Vietnam 2021-01
Factsheet Vietnam 2020-12
Factsheet Vietnam 2020-11
Factsheet Vietnam 2020-10
Factsheet Vietnam 2020-09
Factsheet Vietnam 2020-08
Factsheet Vietnam 2020-07
Factsheet Vietnam 2020-06
Factsheet Vietnam 2020-05

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

Legal information
Key Investor Information Document (only available in Dutch)
Annual report 2020 (Trustus)
Annual report 2020
Sustainability risks 2021-03
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)
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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