InnovestX Targets Ultra High-Net-Worth Individuals, Continues Expanding in the Private Fund Market, Achieves Over 900% Growth in Customer Base

InnovestX Targets Ultra High-Net-Worth Individuals, Continues Expanding in the Private Fund Market, Achieves Over 900% Growth in Customer Base, and Outperforms All Markets Invested in Over the Past 5 Years

InnovestX, an investment flagship of SCBX group, is aggressively entering the private fund market to cater to ultra high-net-worth clients. Operating under the Private Fund Management unit known as Alpha Fund, it currently offers four investment policies: TH Alpha focusing on Thailand, VN Alpha on Vietnam, ID Alpha on Indonesia, and Global Alpha targeting developed markets like the United States and Europe. The company has seen its client base grow by over 900% compared to 2019, solidifying its position as Thailand's top player in the private fund market (data from the Securities and Exchange Commission in 2023). Its flagship fund, VN Alpha, boasts the largest assets under management (AUM) exceeding 7,500 million baht, representing more than half of its total AUM of over 15,000 million baht. The fund has delivered a remarkable return of over +50.1% since its inception in 2021, contrasting sharply with the modest +0.4% growth of the VN Index over the same period.

Mr. Phasuvut Vilainerun, Assistant Managing Director and Head of Private Fund at InnovestX Securities Co., Ltd., commented, "Vietnam's economy is currently in a recovery phase. The latest GDP estimate for the first half of 2024 exceeded expectations, growing by 6.4%. Exports have clearly rebounded, increasing by 10.5%, and the country has attracted $15.2 billion in foreign direct investment (FDI), a growth of 13.1%. Additionally, domestic retail sales have continuously risen by 9.1% compared to the same period last year, indicating a gradual recovery in domestic consumption. The number of tourists in the first half of the year has also surpassed pre-COVID levels of 2019. Although Vietnam's economy is relatively small, it has a high growth rate, driven by stable government management, which has contributed to consistent economic growth over the past decade.

The Vietnamese government places great emphasis on long-term strategies to enhance the country's competitive capabilities. This is evidenced by its Free Trade Agreements (FTAs) with over 80 countries worldwide, covering 90% of global GDP. Additionally, Vietnam has established strategic partnerships with key players like the United States and forged strong alliances with South Korea and Japan to transfer various manufacturing technologies, including electronics, electrical appliances, semiconductors, medical devices, and pharmaceuticals. Vietnam is also collaborating with China on major national infrastructure projects such as dual-track railways and deep-sea ports to support cross-border trade. Given these developments, the Private Fund Management unit recognizes Vietnam's high economic growth potential. We predict that Vietnam's economy could surpass Thailand's within the next 4-5 years and that its per capita income might overtake Thailand's in the next 10-15 years."

"In Vietnam, there are several interesting stocks, with the Alpha Fund VN choosing to invest in about 7-12 stocks that are believed to have the potential to yield better returns than Thai stocks in the long term. We believe that Vietnam could be one of the few countries in ASEAN to overcome the middle-income trap and develop into a highly advanced country like South Korea in the future. Recently, the Private Fund Management unit organized an exclusive trip for investors to visit the leading companies in various industries in Vietnam. These included Mobile World Investment Corp (MWG), a modern retailer of electronics and grocery stores; Phu Nhuan Jewelry (PNJ), a leading retailer of diamond and gold jewelry; Sabeco Brewery (SAB), the producer of Saigon Beer; and Gemadept (GMD), a logistics company covering land, air, and sea operations. Moreover, investors had the chance to engage with the management of FPT Corporation, the largest technology company in Vietnam and the top tech company in ASEAN, to gain insight into their vision and strategies. Investors also met with executives from leading Thai companies with over 10 years of experience operating in Vietnam, such as AMATA, Central Retail, and SCB Vietnam, to gain in-depth insights and create an investment advantage," Mr. Phasuvut concluded.

The Alpha Fund by InnovestX has three distinctive features that set it apart from traditional mutual funds:

Dedicated In-House Analysts: Alpha Fund employs in-house analysts in each country where it invests. These analysts conduct thorough studies of business fundamentals, industry analysis, external factors, and management evaluations to systematically assess the value of target enterprises. The fund invests directly in these enterprises rather than through feeder funds, thereby avoiding double fees and reliance on third-party decisions.

No Index Benchmarking: Alpha Fund does not invest based on index weightings. Instead, it follows a bottom-up investment approach, selecting only 7-15 stocks at any given time that are believed to offer the best returns relative to their risk (High Conviction).

Alignment of Interest: Alpha Fund operates in a way that aligns with the interests of its clients, utilizing a profit-sharing model similar to international hedge funds. This means there is a performance fee based on profits, and in years where there are losses, the fund must first achieve the highest previous net asset value (High Water Mark) before charging a performance fee.

For investors interested in a private fund that aims to deliver superior medium-to-long-term returns, you can follow Alpha Fund by InnovestX on their Line Official Account: @alphafund, contact your personal investment advisor, or call 02 949 1999 for more information.