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

Over 2020 GDP growth was up by 2.9% y/y. While it was the lowest GDP growth in decades, it was still a success for Vietnam as its expansion rate was among the world’s highest ones. Most other countries were much harder affected by the COVID19 pandemic and recorded negative growth. The Industrial and Construction sector grew by 4.0% y/y. Its contribution to total GDP has reached 36.6%. With FDI’s flowing in due to the restructuring of global supply chains, this contribution will continue to grow going forward. The HCMC-Index continued to rally strongly by 8% in December, ending the year with a positive 2020 performance of 7.8%. The TCM Vietnam High Dividend Fund added 4.7% during December, which resulted in a full year result of 12.8%, an outperformance of the benchmark by 5%. 
During 2020 all sectors gained, the strongest performers were:  Materials (+89%) mostly because of Hoa Phat Group (+116%), Information Technology (+27%), Financials (+24%) and Healthcare (+21%). Domestic retail investors were the most active participants, making up more than 80% of the daily transaction value in December. Lower interest rates led to a strong growth of trading accounts in 2020; up 90%. 
Vietnam will apply a new GDP’s calculation method starting 2021. The idea is that the new method will help to provide a more accurate picture of the size and development of the Vietnamese economy. It is expected that 76,000 small enterprises and 306,000 household businesses to be included in the official statistics for the first time. Nominal yearly GDP will likely be revised upwards by 25%, according to the General Statistics Office (GSO). Vietnam’s real growth rate will not be affected, the new and more accurate GDP will expand the country’s room for borrowing and spending. 
The PMI (Purchasing Managers Index) recorded 51.7 in December, compared to 49.9 in November, thanks to a return to growth of manufacturing output as production volumes recovered from the storms in the previous month. Once again foreign investors were net sellers with an outflow of more than US$100 million, this despite the strong momentum and lower valuations compared to countries like the Philippines, Indonesia and Thailand.  We believe that with the current valuations in our portfolio, P/E 8.9x and a dividend yield of 6.2%, the starting point is excellent especially with the support of the fast growing local investor base and the option of a turnaround from out- to inflow from foreign investors in 2021.


Latest factsheet
Factsheet Vietnam 2020-12

Factsheets archive
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
Factsheet Vietnam 2020-01
Factsheet Vietnam 2019-12

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)
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)
Financial Report 2017 (Caceis)
Annual report 2017 (Trustus)
Annual report 2017
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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