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 TCM Vietnam High Dividend Fund rose 0.4% during the month of July, underperforming its benchmark ETF by more than 5%. This was mainly due to our underweight in real estate and the banking sector. In particular index heavy weights like Vietcom Bank, Vingroup, Vinhome and Vincom Retail performed well. Better than expected earnings lifted these names. Although our largest holding FPT also performed well, some of our other larger investments, like the Vietnam Phoenix fund and TNG Investment and Trading Jsc lagged this month.

The market sentiment was positive during the month. The fact that US and China decided to restart the negotiations added to this. A lot of companies released their quarterly earnings, on average results were better than expected. The average combined daily trading volume amounted to USD 193 million, similar to the H1 average. In July foreign investors’ net purchases amounted to USD 95 million, of which USD 55 million was the net foreign purchase in Petrolimex (PLX) as the company sold its treasury shares. Within the Top 100 stocks by market cap, at the end of July, the Top 10 were trading at a 2019F P/E and at a P/B of 23.7x and of 4.1x respectively. The remaining stocks of the Top 100 were trading at much lower multiples (2019F P/E and P/B of 11.8x and of 1.6x respectively).

Disbursed FDI went up by 7.1% at USD 10.6 billion. During the month, PMI increased to 52.6, indicating an expanding manufacturing sector. Also the trade figures were strong with a surplus of USD 1.8 billion. Inflation increased 0.2% for the month to 2.4% for the year.

The fund currently holds 35 positions across a number of sectors. Consumer Staples and Basic Consumer Discretionary are the main themes weighting 20.89% and 15.78% 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 2019-07

Factsheets archive
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)
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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