Over the year 2016 the share price of the Africa fund declined 1.91% while the benchmark index fell 5.12%, both measured in euro and based on total return. The fund had a net inflow and issued 27,199 ... Read more
Intereffekt Global Frontier High Dividend Equity is called TCM Global Frontier High Dividend Equity since November 2015.
TCM Global Frontier High Dividend Equity invests in stocks listed on the local exchanges of the Frontier Markets Universe. To set up the portfolio the fund will make a selection of countries on the basis of quantitative and qualitative screening. By using these selection criteria the fund will have a diversified portfolio invested in several countries and sectors. The equally weighted portfolio will be re-weighted and re-allocated on a periodically scale. The risk profile is high, due to investment in equities and Frontier Markets. In principle, the fund will pay out dividend twice a year with an expected dividend yield of approximately 5-6% per annum. The benchmark of the fund is the Frontier Market Index (Total Return).
TCM Global Frontier High Dividend Equity is a subsidiary fund of Intereffekt Investment Funds N.V. (IIF), established with a so-called umbrella 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).
Over the year 2016 the fund share price rose 10.78% and thereby it outperformed the iShares Frontier 100 ETF that gained 5.10% over the period. It is the third consecutive year that the fund outperformed its benchmark. Since inception of the fund in November 2012 the fund share price has risen 62.73% compared to a gain of 35.88% for the iShares Frontier 100 ETF, all measured in euro and based on total return. The fund had a net inflow and issued 529,541 shares in 2016, lifting the total amount of outstanding shares to 2,186,601. The AuM rose from 21.6 to 29.5 million euro. Furthermore, in May as well as November, a dividend per share of EUR 0.38 was paid. Based on the year-end-closing price this amounts to a dividend yield of 5.6%.
Within the frontier markets universe the markets in Pakistan (13.94%) and Morocco (+10.15%) were among the best performers last month. De rally in Pakistan is said to be inspired by the expected upgrade to Emerging Market status in May. Vietnam (-3.85%) and Ukraine (-6.88%) were the laggers during December. Within the portfolio we took some profits in Attock Cement in Pakistan. The stock doubled in value in 12 months’ time. Furthermore, we added to our positions in Vietnam and Bangladesh and bought a few new names such as Blom Bank in Lebanon. The stock trades currently at 5.37 times expected earnings and has a dividend yield of 7.5%.
Currently the fund has 86 (equally weighted) stocks in portfolio, which are spread over 21 different countries. The countries with the largest weightings are now Pakistan (20.10%), Vietnam (13.16%) and Bangladesh (8.69%). In these markets we currently find the most interesting high dividend stocks, which meet our quality requirements. The country weightings are thus mainly determined by the relative attractiveness of the market as a whole relative to other countries. Consequently, the fund differs significantly from the benchmark index.
Among the winners this month were mostly Pakistani names like Pakistan Oilfields (+24.95%) and Bank Al Habib (+22.14%), but also Alexandria Mineral Oils was up by 23.19% in Egypt.
The losers this month were Vietnamese names such as Petroviet Nhon Trach (-11.95%) and Petroviet Fert & Chemical (-11.54%), all measured in euro and based on total return.
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.