Innotech Asset Management has today announced the launch of a new sustainable Thai equity fund, and has selected Arabesque Asset Management, a global asset management firm, as its portfolio investment advisor. The ‘Innotech Sustainable Thai Equity Systematic Fund’ (I-SEQS) follows a systematic investment approach and integrates sustainability information on listed companies.
Mr. Surashate Sriwattanakulwong, Chief Executive Officer of Innotech Asset Management, revealed that the company is preparing to launch an initial public offering (IPO) for the Innotech Sustainable Thai Equity Systematic Fund from 7th to 17th July 2020. The fund will invest in companies, which are listed on The Stock Exchange of Thailand (SET) and Market for Alternative Investment (mai), with an average net exposure at least 80% of net asset value over a fiscal year.
The Sustainable Thai Equity Systematic Fund aims to identify companies with good environment, social and governance (ESG) performance using Arabesque S-Ray®, and utilises a systematic investment approach to stock selection based on Risk Premia.
Innotech Asset Management has appointed Arabesque Asset Management as its portfolio investment advisor, and will benefit from the firm’s expertise in ESG investing. The partnership represents one of the first collaborations between a Thai and a global asset management company for Thai equity funds.
The Innotech Sustainable Thai Equity Systematic Fund has six share classes to serve various investor groups such as retail investors, institutional investors, and high-net-worth individuals (HNWI). This includes a ‘Super Saving Fund (SSF)’ share class. The company will donate a management fee of 0.1% of NAV to support various ESG-related projects.
With the stock market showing signs of recovery over the past two months, Innotech Asset Management believes that the outlook for the SET Index looks positive. Central banks and governments around the world have delivered vast stimuli packages recently to support economies, and therefore liquidity is flowing through the global monetary system. Furthermore, many analysts have already revised company earnings down significantly, which limits the market downside from the current level. Meanwhile, countries are starting to emerge from the worst of the initial Covid-19 outbreak with some, particularly Thailand, on course to manage the recovery better than others. Over the long term, Innotech Asset Management therefore expects earnings of listed companies to be revised up, with a resulting upside for the SET Index.
Innotech Asset Management is wholly owned by Seamico Securities Public Company Limited and is staffed with qualified financial professionals with experience of managing mutual funds and private funds. The company focuses on seeking technology and innovation to improve financial products to meet investors’ requirements. Recently, the company launched cutting-edge platforms such as E-account opening, Streaming for Fund trading, and FundConnext.