Update Frontier Markets - fact sheets August

​Now that the month of August has ended, we can review the first eight months of the year. Overall, we see a predominantly positive picture for frontier markets. The TCM Vietnam Fund posted a return of +17.43% during this period, significantly outperforming the index tracker (Vietnam ETF), which showed a return of -3.38% over the same period. 

The more broadly diversified TCM Global Frontier Markets Fund achieved a return of +5.67% in the first eight months, underperforming compared to the index tracker, which stood at +9.82%. This underperformance is due to currency devaluations earlier in the year in Egypt and Nigeria, where the fund had a higher weighting at the time. However, over the past three months, the fund has made a comeback, achieving a return of +3.19% compared to +1.83% for the index ETF. In the past month, the positions in Vietnam positively contributed to the overall result.
 
One of the companies that drew attention was Mobile World, a leading Vietnamese retail company specializing in consumer electronics, mobile phones, and daily groceries through its chains Thegioididong, Dien May Xanh, and Bach Hoa Xanh. In the second quarter of 2024, the company achieved a net revenue of VND34,385 billion, representing a year-on-year increase of 15.9%, and a net profit of VND1,172 billion, marking a 69-fold increase compared to the previous year. This strong performance, particularly in the consumer electronics and Bach Hoa Xanh (supermarket) segments, demonstrates that MWG has effectively managed cost control and operational efficiency. The strong correlation between the penetration of modern retail chains, urbanization, and household income levels is a positive indicator for MWG's future in Vietnam. This trend suggests that as urbanization and incomes rise, the demand for modern retail formats like those offered by MWG will continue to grow, presenting opportunities for further expansion and profitability.

More news about Vietnam, Africa and the Global Frontier fund can be found in the latest fact sheets of the equity funds:

TCM Global Frontier High Dividend Equity

TCM Vietnam High Dividend Equity

TCM Africa High Dividend Equity