Specialists in frontier and emerging markets
New fact sheets equity funds available

New fact sheets equity funds available

Published on January 18, 2017

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

New fact sheets equity funds available

New fact sheets equity funds available

Published on December 15, 2016

Since the start of the year the share price of the Global Frontier fund rose 6.2% and thereby it outperformed the iShares Frontier 100 ETF that gained 3.76% over the period, both measured in euro and ... Read more

New fact sheets equity funds available

New fact sheets equity funds available

Published on November 15, 2016

Since the start of the year the TCM Global Frontier High Dividend fund share price rose 4.4% and thereby it outperformed the iShares Frontier 100 ETF that gained 0.68% over the period, both measured i... Read more

Trustus applies ESG criteria in Frontier Markets

Trustus applies ESG criteria in Frontier Markets

Published on November 14, 2016

As of October 1, 2016 Trustus Capital Management (TCM), an independent fund manager specialized in Frontier Markets, introduced an ESG methodology for its TCM Investment Funds. TCM is one of the first... Read more

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Equity Fund Vietnam

Fund profile

Intereffekt Frontier Vietnam is called TCM Vietnam High Dividend Equity since November 2015.

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

Vietnam will keep attracting investment in 2017, expanding export production and watching domestic consumption spread in 2017, according to this years Forbes’ forecast. The country can also meet its economic growth target of 6.8% set by the Government thanks to these advantages. Forbes thinks US President-elect Donald Trump is expected to scrap Trans-Pacific Partnership (TPP), the 12-nation trade agreement that would particularly help member Vietnam as an exporter. However, not everyone is on the same page and some suspect Trump will somehow salvage it. If not, Vietnam already takes part in 16 free trade agreements (FTAs), including with economic powerhouses China and Japan. It can pursue bilateral agreements with other TPP members if the US Congress declines to ratify the deal signed in 2016.

Besides this, Vietnam will also keep giving foreign companies reasons to invest, adding that foreign investors already benefit from lower tariffs under the trade deals. Some also get lavish tax breaks. In addition, Vietnamese people are getting richer and spending more. The country’s middle class will double by 2020 to 33 million people and that means more consumption, the Boston Consulting Group estimated last year. People in that group earn at least US$714 per month, enough for phones, motorcycles, travel and health products, items that usually make the short list of local consumer preferences. The middle class has got where it is because wages are rising along with a boom in jobs linked to growth in export manufacturing. The factory work in Vietnam is moving up in value from traditional industries.
 
The TCM Vietnam fund showed a negative retun of 0,08% accross the year, outperforming the van Eck Vietnam ETF by almost 7% and underperforming the DXB Vietnam ETF by a small margin. The HCMC Stock Index managed to gain more than 20% due to the big gains of former FOL (Foreign Ownership Limits) funds like Vinamilk and heavyweights VIC (real estate) and the IPO of Saigon Beer and Alcohol Beverage Corp.;+52% with limited trading and a weight of 8,7% in the HCMC Stock Index.
The fund holds 39 positions at the end of the year across a large number of sectors. Basic Materials and Industry are the main themes weighting 26.8% and 16.3% of the portfolio. Within these sectors we currently find the most high dividend stocks who meet our criteria. The weighting of a sector 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.
In line with the recent Forbes report we state that the Vietnamese SME enterprises are attractively valued going forward. The average P/E for the fund is a little above 8, with an average dividend yield of 4.7%.

Downloads

Latest factsheet
Factsheet Vietnam 2016-12

Factsheets archive
Factsheet Vietnam 2016-11
Factsheet Vietnam 2016-10
Factsheet Vietnam 2016-09
Factsheet Vietnam 2016-08
Factsheet Vietnam 2016-07
Factsheet Vietnam 2016-06
Factsheet Vietnam 2016-05
Factsheet Vietnam 2016-04
Factsheet Vietnam 2016-03
Factsheet Vietnam 2016-02
Factsheet Vietnam 2016-01
Factsheet Vietnam 2015-12

Additional information
information sheet fundmanagement 2016-07
Citywire AAA ranking 2014-01

Legal information
Key Investor Information Document
Change of conditions 2016-12
IIF semi-annual report 2016
Trustus conflict of interest policy 2016-07
Trustus annual report 2015
IIF annual report 2015
Change of conditions 2015-11
Name change funds 2015-10
Certificate of Incorporation TRUSTUS
Certificate of Incorporation Intereffekt
Prospectus
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.