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 Ho Chi Minh Stock index rallied strongly by 11% in February. The recovery was broad-based. The Ho Chi Minh Stock index regained all losses from January due to the resurgence of Covid-19 in Vietnam, with a year to date performance of 7.6% in euro.  The real estate sector performed well, the expected foreign direct investments inflow will support land prices and benefit property developers. Next to the real estate sector also the banking sector and smaller sectors like IT, consumer discretionary and energy showed a strong recovery. The TCM Vietnam High Dividend fund gained 8.6% during the month, outperforming its benchmark ETF by 0.8%. We believe the fund has ample room to increase its outperformance with a modest current P/E valuation of 10.3x.
Despite the market rally foreign investors were still net sellers in February, leading to total net outflow of $129mn so far this year. One investment that bucked the trend was the VN Diamond ETF, which invests in stocks with a Foreign Ownership Limit, the inflow here amounted to US$ 227 million during the first 2 months of the year.
From the Covid-19 front; large cities such as Ho Chi Minh City will be allowed to reopen most non-essential businesses such as restaurants, movie theaters, wedding centers, and tourist monuments/museums from March onward. On February 24th, the first batch of 117,600 Covid19 vaccine doses produced by Oxford – AstraZeneca arrived in Ho Chi Minh City. The government expects to import up to 30 million doses within the first half of 2021. Vietnamese people will get the vaccine for free; however due to limited supply initially, priority will be given to the specified groups.
In February, both exports and imports fell compared to the same period of last year, this was due to the number of free working days due to the Vietnam’s Tet holiday. The first 2 months combined, imports amounted to $47.3bn (+25.9%), and exports to $48.5bn (+23.2%), generating a trade surplus of $1.2bn. Again these numbers show the limited impact of Covid-19 on the Vietnamese economy and also that Vietnam as a proxy for global demand should lead to a strong global recovery. 


Latest factsheet
Factsheet Vietnam 2021-02

Factsheets archive
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
Factsheet Vietnam 2020-04
Factsheet Vietnam 2020-03
Factsheet Vietnam 2020-02

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
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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