Specialists in frontier and emerging markets

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

Vietnam is moving up in the global value chain
According to the World Bank, Vietnam has integrated into the global value chain and improved national economic progress and productivity through creative policy making for the transportation and service sectors. Also effective border controls and regional co-operations added value.
Ousmane Dione, Country Director for the World Bank in Vietnam, praised the country’s efforts in generating more added value, as well as connecting domestic producers and foreign investors, creating a stable business environment and helping the country move up the international economic ladder. With a 180% ratio of exports over gross domestic product, Vietnam is one of the most active exporters in the world and one of the most open countries in terms of trade potential. Vietnam has made a name for itself as a manufacturer in Asia, with four industrial sectors joining in the world’s production chain, including automobiles, electronics, agriculture and textile.

During the month of August the financial markets moved sideways, the Vietnamese Dong lost another 0.65% versus the Euro. Year to date the Dong (in line with the US$) has lost 12.4% in value versus the Euro. The lower currency is the main reason for a disappointing year so far. Measured in Dong the fund is up more than 12% ytd. The situation in North Korea also caused some tensions on the Vietnamese exchanges, but at the end of the month the bourses calmed down.
 
The big movers this month were Lam Thao Fertilizers (+28%), Masan Group (+10%) and Hoa Binh Rubber (+8.9%). Masan Group, a conglomerate in the food industry, is back on the radar of investors after years of downward pressure on the stock. The stock entered the portfolio 6 months ago on its attractive dividend yield and high return on equity. The worst performers in August were Fecon Corp, the engineering company (-15%) and Dong a Paint (-11.5%).
 
The fund currently holds 55 positions across a number of sectors. Basic Materials and Industry are the main themes weighting 27.3% and 20.3%. 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 strongly deviate from the Vietnamese benchmark indices.

Downloads

Latest factsheet
Factsheet Vietnam 2017-08

Factsheets archive
Factsheet Vietnam 2017-07
Factsheet Vietnam 2017-06
Factsheet Vietnam 2017-05
Factsheet Vietnam 2017-04
Factsheet Vietnam 2017-03
Factsheet Vietnam 2017-02
Factsheet Vietnam 2017-01
Factsheet Vietnam 2016-12
Factsheet Vietnam 2016-11
Factsheet Vietnam 2016-10
Factsheet Vietnam 2016-09
Factsheet Vietnam 2016-08

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

Legal information
Key Investor Information Document
IIF semi-annual report 2017
Financial-Report-2016-CACEIS
Trustus semi-annual report 2017
IIF annual report 2016
Trustus annual report 2016
Change of conditions 2016-12
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.