Vietnam on track for 6.5 GDP growth in 2017
Based on the strong economic performance in Q3 2017, Vietnam is on track to deliver growth of around 6.5% in 2017. Vietnam’s Q3 GDP growth rose by a strong 7... Read more
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.
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).
In September the share price of the fund increased by 2.85% whereas the benchmark index decreased by 1.18% over the same period, both measured in euro and based on total return. Since the start of the year the fund (13.92%) outperformed the index (6.51%). It’s the fifth consecutive year that the fund records an outperformance. The fund currently has a 5-star Morningstar rating on a five-year basis.
In Kenya the situation is tensed because of the upcoming elections on October 26th. The stock market fell by more than 3% last month, making it one of the worst performing in our universe. Nevertheless, Safaricom (1.27%) rose against the trend. This Kenyan telecom company is the second largest stock in portfolio.
Egypt made a positive contribution to the portfolio. The fund performance benefited this month as the fund has a 2x higher weighting in the country compared to the benchmark index. For example, the outperformer was the conglomerate MM Group for Industry & International trade. The share rose 33.75% this month after publication of a very positive analyst report.
The fund currently has positions in 36 shares, divided into 7 different countries. The countries with the greatest weighting are now Egypt (32.16%), Nigeria (24.69%), Morocco (14.28%) and Kenya (13.18%). 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.
Among the biggest winners in the portfolio were MM Group for Industry & International trade (33.75%) and Elswedy Electric (18.82%) both in Egypt. In Ghana, Ecobank (16.46%) was a big winner. Among the losers were Standard Chartered Bank (-24.96%) in Ghana and mining company Compagnie Miniere (-11.74%) in Morocco, 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.