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 VN-Index, the market-cap weighted index of the Ho Chi Minh Stock Exchange (HSX), Vietnam’s main bourse, increased by 11.9% in 2019 (measured in euro). The performance was mainly driven by Vietcombank (VCB +70%), PetroVietnam Gas (GAS +13%) and by the three Vingroup-related companies including Vingroup (VIC +21%), Vinhomes (VHM +17%) and Vincom Retail (VRE +26%). Without the contribution of these heavy weights, the VN-Index would have increased by 0.2% in local currency. The benchmark ETF increased by 5.1%, while the TCM Vietnam High Dividend Fund rose 4.8%. The TCM Vietnam High Dividend fund has a dividend driven focus and wasn’t invested in the three Vingroup related companies during the year. Not only in our view their valuation appeared to be rather high and there is not enough room for a healthy dividend policy. Vingroup has started to invest new businesses such as retail, education, healthcare, smartphones and cars. So far only its traditional business – real estate – is profitable. The company has made an investment of about $3.5 bn (20% of its market cap) in the car making business, which is likely to suffer a projected annual loss of about $770 million. As for VCB, the stock has outperformed the banking sector thanks to its relatively high free float and available foreign room. VCB is currently trading at a P/B of 4.2x compared with a P/B of 1.4x for the sector. For us enough reasons to invest outside of these large cap names. The largest position in the fund is currently FPT, a stable growing IT provider. FPT remains one of the most undervalued stocks in the market relative to regional peers. Given attractive valuations and excellent long-term prospects for this leading Vietnamese technology firm, we see significant value in the stock. However, as its FOL is full, and there is little or no chance of this changing in the near-term, access to the stock has long been difficult for institutions. At the end of 2019 The TCM Vietnam High Dividend Fund had the following characteristics. The fund holds 31 positions, with an average dividend yield of 6.5% and an average P/E ratio of 7.8 and a P/B ratio of 1.3. In our view the portfolio offers an even more compelling investment opportunities than last year. Consumer Staples and Materials are the main themes weighting 19.5% and 16.9% 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 2019-12

Factsheets archive
Factsheet Vietnam 2019-11
Factsheet Vietnam 2019-10
Factsheet Vietnam 2019-09
Factsheet Vietnam 2019-08
Factsheet Vietnam 2019-07
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
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)
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
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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