A gross interim dividend in cash per ordinary share will be paid out for: Read more
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.
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).
North Korean Tensions
In the last month especially some of the small and midcap positions in the fund were under pressure. Tensions caused by North Korea were the main reason for investors to hit the sell button. Other than this most of the news that came out was rather positive.
The Government published new figures on tourism. Tourist arrivals in Vietnam surged 34 percent year-on-year to 1.07 million in April. Visitors from Asia increased the most by 38 percent, followed by those from European countries (31 percent), Africa (24 percent), Australia (12 percent) and America (12percent). Tourist arrivals in Vietnam averaged 732 thousand from 2015 until 2016, reaching an all time high of 1.19 million in February of 2017 and a low of 529 thousand in June of 2015. Which shows Vietnam is an increasingly popular destination for holidays.
Retail sales rose 11.1 percent (yoy) in April of 2017, following an 11.7 percent growth in March. Considering the first four months of 2017, retail sales rose 9.6 percent compared to the same period a year earlier.
The TCM Vietnam fund showed a negative return of 5% during the month. The fund underperformed the benchmark by 2%. Since the fund has a high dividend approach we normally experience a better performance in times of turmoil, we didn’t see this occurring in April. On the other hand the fund has very attractive valuation with an on average P/E of 8.6 versus the benchmark P/E of 16. And a dividend yield of almost 5%, which is almost double the yield of the benchmark.
The fund holds currently 48 positions across a number of sectors. Basic Materials and Industry are the main themes weighting 25.5% and 16.5% respectively. 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 May the fund will declare its dividend and as of this time investors have a choice between stock and cash.
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.