A gross interim dividend in cash per ordinary share will be paid out for: Read more
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).
In April the fund share price declined 0.80% whereas the benchmark index fell 0.73% over the same period, both measured in euro and based on total return. During the month, the fund had a net inflow of 40,254 shares, lifting the total amount of outstanding shares to 2,454,254. The AuM are currently 32.2 million euro.
Compared to the benchmark, the underweight in Argentina and Kuwait contributed in a positive way this month, after the fund lagged in Q1 because of the rallies in these markets. The focus on high dividend stocks, which is the long term strategy of the fund, is resulting in an underweight in the mentioned countries since there are hardly any stocks that currently comply with our high dividend selection criteria.
During the period, Nigeria dominated the news since the government has introduced a new FX rate applicable to importers and exporters as well as foreign investors. The new FX window should make it easier to get access to foreign currencies. The goal is to trigger international trade again which has come to a halt due to the shortage of dollars. Effectively it is a naira devaluation of 20%, which has been calculated into the portfolio in the beginning of May. In May the fund will declare its dividend and as of this time investors have a choice between stock and cash.
Currently the fund has 92 (equally weighted) stocks in portfolio, which are spread over 20 different countries. The countries with the largest weightings are now Pakistan (17.24%), Vietnam (12.25%) and Bangladesh (9.63%). 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 was Cal Bank (+48.15%) in Ghana recovering from a decline of 29% in the previous month. Furthermore, National Co For Maize rose 30.98% in Egypt after the stock had doubled in the forgoing month since 4 parties are bidding for a stake in the company. Another winner was Donaco (+18.11%) in Australia. The losers this month were United Commercial Bank (-17.82%) and Southeast Bank (-13.11%) both in Bangladesh, 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.