In January the Africa fund share price rose 1.43% while the benchmark index fell 1.90%, both measured in euro and based on total return. The amount of outstanding shares declined slightly to 586,081 s... Read more
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.
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).
At the end of January the Government announced that is determined to take drastic measures to improve business climate and competiveness indicators to reach the average level of ASEAN top 4 countries by the end of this year.
The ratio behind the steps is that despite continuous efforts made by the Government, ministries, agencies and localities to tackle difficulties for businesses and create favourable conditions for investors, most of the indices of business environment have not reached the level of the top 4 countries Singapore, Malaysia, Thailand and the Philippines.
Next to this reaching the level of the top 4 countries in terms of business environment, Vietnam wants to become one of the top 70 or 80 countries in terms of startups and protection of minority investors, respectively, and being among the top 30 countries listed by the World Bank in transparency and access to credit. The renewed targets hold also very practical targets like shorten the time a company has to spend on doing tax and social insurance procedures to a maximum of 168 hours per year.
By 2020, the country is also striving to achieve the average level of ASEAN 5 countries (Singapore, Malaysia, Indonesia, Thailand and the Philippines) in terms of the Global Innovation Index released by the World Intellectual Property Organisation. In short; no lack of ambition from the Governments point of view, the coming years will prove if this targets can be reached.
The TCM Vietnam fund showed a positive return of 0,98% during the month of January. The benchmark increased by almost 2%. The Vietnam Phoenix Fund will be split up in 2 types of shares after the EGM resolution in December last year. The fund will split into B shares (“liquidation shares”) and C shares (“private equity shares”). The B shares will liquidate within 6 months and return cash to the shareholders. The C shares have a 3 year mandate to liquidate the portfolio, the C shares are currently trading with a discount of 30%.
The TCM Vietnam fund holds 44 positions at the end of the year across a large number of sectors. Basic Materials and Industry are the main themes weighting 23.77% and 15.26% respectively. Within these sectors we currently find the most high dividend stocks that 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.
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.