Specialists in frontier and emerging markets
Column: Drawdown Risk in Emerging Markets

Column: Drawdown Risk in Emerging Markets

Published on february 19, 2019

Investors in emerging markets are often being exposed to more risk than necessary. Index products like ETF’s do not protect against major drawdowns. Often the risk in these markets is measured b... Read more

New fact sheets equity funds

New fact sheets equity funds

Published on february 14, 2019

In the first month of the year the share price of the Global Frontier fund went up by 6.37%. The fund outperformed the index, which rose by 4.77%. Both measured in euro on total return. Read more

Outlook Frontier Markets 2019

Outlook Frontier Markets 2019

Published on january 22, 2019

After a correction of more than 12% in 2018 we think that frontier markets are likely to rise in 2019. Corrections in the frontier and smaller emerging markets universe are often followed by a quick r... Read more

New fact sheets equity funds

New fact sheets equity funds

Published on january 15, 2019

Despite the complex development of the global economy, Vietnam recorded impressive economic results in 2018. The national gross domestic product (GDP) grew by 7.08 percent, the highest level since 200... Read more

New fact sheets equity funds

New fact sheets equity funds

Published on december 13, 2018

The Vietnam fund gained 2.5% this month outperforming the benchmark ETF by 1.8%. The market in general was positive after the more than 7% decline for the FTSE Vietnam index during October. Only ... Read more

All blogposts

Equity Fund Africa

Fund profile

TCM Africa High Dividend Equity is an equity fund, investing in listed shares in the northern and sub-Sahara regions of Africa. Initially it will focus on Egypt, Morocco and Nigeria. In addition, it will invest in Kenya, Ghana, Botswana and Mauritius. In principle, its portfolio will have limited exposure to South Africa. The relationship between global financial markets and African markets is low, because the latter are less sensitive to international developments. The funds investment policy will be aimed at achieving capital growth as well as dividend pay outs. The benchmark of the fund is the Africa ex South Africa Index (Total Return). The risk profile is very high, due to investments being channelled into frontier/emerging markets in Africa. 
TCM Africa High Dividend Equity is a subsidiary fund of Intereffekt Investment Funds N.V (IIF)., established with a so-called umbrella 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).

logo's duurzaamheid

Fund performance

grafiek afrika sep

The Fund Manager writes

In October the share price of the fund rose 3.65% whereas the benchmark index increased by 1.10% over the same period, both measured in euro and based on total return. Since the start of the year the fund (+18.07%) outperformed the index (+7.69%). It’s the fifth consecutive year that the fund records an outperformance. Morningstar rates the fund at 5 stars over this 5 year period.

This month the fund benefited from the stock picks in Egypt as Palm Hills (+29.33%), MM Group for Industry (+24.04%) and Alexandria Mineral Oils (+20%). These stocks were among the best performers. Thereby, they showed better returns than the EGX30 index which rose 5.25%, all measured in euro and based on total return. Although Egypt was the best performing market in our Africa universe, all eyes were on Kenya were Kenyatta claimed the election victory with 98 percent of the votes. A new vote was held after finding that the outcome in August had been tainted by irregularities. In spite of the unrest, Safaricom rose 3.8%. This month we took some profits as the stock rose over 23% year to date and the dividend yield has declined.

Within in the fund we have bought Lucara Diamond. The stock of this diamond miner fell over 30% in a year, but has become attractive at these levels according to our model. The company has projects in Botswana and Lesotho and trades 9.7 times earnings at a dividend yield of 4%. Recently the company was in the news when they sold the biggest diamond in the world for 45 million euro.

The fund currently has positions in 36 shares, divided into 8 different countries. The countries with the greatest weightings are now Egypt (33.55%), Nigeria (25.25%), Morocco (13.20%) and Kenya (12.44%). In these markets there are currently the most interesting high dividend shares that meet the quality requirements. Thus, the weighting of a country is mainly determined by the relative attractiveness of the market relative to the other countries. The fund can thus deviate significantly from the benchmark.

Downloads

Latest factsheet
factsheet africa 2019-01

Factsheets archive
factsheet africa 2018-12
factsheet africa 2018-11
factsheet africa 2018-10
factsheet africa 2018-09
factsheet africa 2018-08
factsheet africa 2018-07
factsheet africa 2018-06
factsheet africa 2018-05

Additional information
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 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)
Change of conditions 2016-12
Conflict of interest policy 2017-12 (Trustus)
Annual report 2015 (Trustus)
Annual report 2015
Change of conditions 2015-11
Name change funds 2015-10
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 IIF has obtained a licence for this fund from the Netherlands Authority for the Financial Markets in accordance with the provisions of the Financial Supervision.