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 corrected by more than 5% in June. As a result of the negative performance in June, the VN index ended the first half of the year with a loss of 13.9% (all measured in euro).
The TCM Vietnam High Dividend fund lost 0.59% during the month of June, which led to an YTD performance of -7.59%. The fund outperformed its benchmark ETF and the VN Index by margins between 4 and 5% so far this year. Major contributors to the outperformance were Vinhkhanh Cable Plastic Corp (+71% ytd), Quang Ngai Sugar (+18% ytd), Binh Minh Plastics JSC (+19% ytd) and steelmaker Hoa Phat Group JSC (+10% ytd). 
During the last weeks of June many listed companies organized their Annual General Meetings to outline their financial goals for 2020 and to shine a light on the projected Q2 results. In general, second quarter results were weak as expected, this may come as no surprise. However, the recovery might take some more time as originally thought, Q3 results will still be (partly) influenced by the Covid-19 pandemic, according to comments from the boards at the AGM’s.
Figures released from the General Statistics Office show that Vietnam’s GDP is expected to grow by 0.4% y/y in the April-June period, despite the slump in economic activities during the lockdown period. But as business activities are resuming and people are more and more confident that the pandemic is finally over thanks to the aggressive measures taken by the government, figures are improving fast. In June, retail sales rebounded by 5.3% y/y after declining for 3 consecutive months. 
During the first half of 2020, Vietnam’s exports amounted to $121.2 billion, -1.1% y/y, while imports totaled $117.2 billion, -3.0% y/y, according to first estimates. This resulted in a trade surplus of $4.0 billion during this period. In June, Vietnam’s exports declined slightly by 2.0% y/y, reaching $21.0bn. On the other hand, the country’s imports recorded $20.5bn this month, up by 5.3% y/y. However, the rise in imports could well indicate a potential recovery in exports in coming months as Vietnam needs to import raw materials for its export-oriented manufacturing sector. Imports of electrical components, used for mobile phones and laptop assembling, rose by 30.8% y/y in June.
The fund currently holds 29 positions at the end of the first half year. Industrials and Consumer Staples are the main themes weighting 22.05% and 20.16% respectively. 


Latest factsheet
Factsheet Vietnam 2020-06

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

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


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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