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 as a gauge for Vietnam’s stock market, was up by 2.9% in September. The TCM Vietnam High Dividend Fund rose almost 2.1%, bringing the ytd performance to 48.8%. Real estate experienced a difficult month as the Evergrande news also had its effect on Vietnamese real estate sector. Although the debt to equity ratio for the top Vietnamese real estate companies with 63% is much healthier than the Chinese top 10 with al level of 126%.
The last wave of COVID calmed down in September. The number of daily new cases in Vietnam declined from the peak of over 13,000 to around 9,000 cases per day. The number of daily deaths dropped to below 200 cases, the lowest level since the beginning of the last wave. The government decided to ease the lockdown measures so business activities indoors or outdoors are expected to resume with a maximum of 10-15 people and could reach 70 people if all participants are fully vaccinated or recovered. People have to use the QR code to go around. 
GDP fell by 6.2% in Q3 due to the lockdown period, but still grew by 1.4% on a yearly basis during the first 9 months. The trade balance of September was positive for the first time since March 2021, reaching $0.5bn due to a reduction of imports, driven by the drop in commodities import. So far into 2021 Vietnam recorded a trade deficit of U$1.8bn. 
The fund currently holds 33 positions across a number of sectors at the end of August 2021. The average TCM Vietnam portfolio P/E is at 10.9 and the underlying dividend yield currently amounts to almost 6%. The fund is tilted towards higher dividend paying (“value”) companies in the mid- and small cap area. Industrials and Consumer Staples are the main sectors weighting 30.6% and 14.2%. Within these sectors we currently find the most high dividend stocks which meet our criteria. The weighting of a sector in the fund 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 2021-09

Factsheets archive
Factsheet Vietnam 2021-08
Factsheet Vietnam 2021-07
Factsheet Vietnam 2021-06
Factsheet Vietnam 2021-05
Factsheet Vietnam 2021-04
Factsheet Vietnam 2021-03
Factsheet Vietnam 2021-02
Factsheet Vietnam 2021-01
Factsheet Vietnam 2020-12
Factsheet Vietnam 2020-11
Factsheet Vietnam 2020-10
Factsheet Vietnam 2020-09

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)
financial report 2020 (Caceis)
Semi-annual report 2021
Semi-annual report 2021 (Trustus)
Annual report 2020 (Trustus)
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
Prospectus (only available in Dutch)
Conflict of interest policy 2021-03 (Trustus)
Certificate of Incorporation (Trustus)
Certificate of Incorporation

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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