Specialists in frontier and emerging markets
New fact sheets equity funds

New fact sheets equity funds

Publiced on july 11, 2019

During the first half of 2019 the Global Frontier Equity fund price went up by 5.04% with the index rising by 12.8% over the same period, both in euro based on total return. The strength in the i... Read more

New fact sheets equity funds

New fact sheets equity funds

Publiced on june 18, 2019

The Frontier Markets (FM) index sidestepped the heavy sell-off in global equities last month, with a 2.6% rise thanks to a rebound in Argentina (+ 13.55%) and continued strength in Kuwait (+ 4.01%) ),... Read more

New fact sheets equity funds

New fact sheets equity funds

Publiced on may 16, 2019

In April the price of the TCM Vietnam High Dividend fund increased by 1.48%. The fund outperformed the ETF which declined by 1.28%. The exchanges in Ho Chi Minh (+ 0.20%) and Hanoi (+ 0.15%) were slig... Read more

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Equity Fund Vietnam

Fund profile

TCM Vietnam High Dividend Equity is an 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. The risk profile is high, due to investments being channelled into frontier markets in Vietnam. The benchmark of the fund is the FTSE Vietnam Index (Total Return). The relationship between global financial markets and the Vietnamese markets is low, because the latter are less sensitive to international developments. 
TCM Vietnam 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).

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Fund performance

grafiek vietnam apr

The Fundmanger writes

Vietnamese CEOs full of confidence, but FLC Faros Construction atracks most attention
An overwhelming majority of Vietnamese CEO’s are confident about growing revenues and profits in the coming years and preparing to adapt to the fourth industrial revolution (the so called Industry 4.0). The PriceWaterhouseCoopers (PwC) survey found 92% of CEO’s of Vietnamese businesses expects higher future earnings and profits. While most CEO’s agreed that that automation will be a major progressive development in the future, they also saw that preparations in Vietnam were lagging. But despite this, Vietnam is still seen as one of the fastest growing nations in information technology and this will attrack more future technology investments. According to the PwC survey Vietnam could be among the top 20 economies in the world, surpassing several more advanced economies, such as the Netherlands in 2030 and Australia in 2040.
 
The fund experienced a rather strange month with a rise of “only” 0.3%. The Vietnamese Dong gained 1.4% versus the euro. The most remarkable performance this month came from FLC Faros Construction JSC. The stock rose during the last two weeks of October with 82% and over the month with almost 90%. Since the stock is one of the heavy weights in the FTSE Vietnam (9.4%), accounted for almost 5% of the performance of the benchmark this month. The stock is obviously being revalued without a broader known reason. With a current P/E at 180, the market seems to be looking for a pile of good news.
Since the introduction in September 2016 FLC Faros increased its marketcap from $ 170 million to $3.6 billion. The sharp run up seems to be excellerated by the buying of the ETF’s to keep track with the marketcap development of the stock. We stay far away from these kind of investments, as they offer only speculative value to traders and speculators.

Within the benchmark also the largest holding Vingroup JSC had a strong month with a rise of 14%. Vingroup currently trades at a P/E of 50, also beyond the scope of the High Dividend strategy of the fund. We as stated before feel more comfortable with the current names in portfolio, with an average dividend yield of 4.7% and a P/E of 11.5.

The fund currently holds 55 positions across a number of sectors. Industry and Consumer Goods are the main themes weighting 21.44% and 17.89%. 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 2019-06

Factsheets archive
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
information sheet fundmanagement
outlook 2019 frontier markets
Citywire AAA ranking 2014-01

Legal information
Key Investor Information Document (only available in Dutch)
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 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.