Investment Management
Managed Accounts
ICA offers personalized investment management services ("Managed Accounts") to individuals and institutions. In the Managed Accounts unit, ICA constructs and manages a portfolio of equity investments, provides access to investment opportunities and monitors market developments. Investors are offered exposure to ICA's actively managed model portfolio.
ICA has been engaged in providing investment management and advisory services to managed accounts focused on Vietnamese securities since 2004. Our approach to managed accounts follows a capital appreciation strategy, targeting public listed companies and OTC companies with confirmed plans for public offering. Preferred sectors are industries that target domestic consumption or are export-oriented, allowing our investors to capture Vietnam's dynamic growth as an emerging market.
Listed Securities Portfolio Management
ICA works closely with several oversease securities firms, offering investment advisory services to foreign funds investing in Vietnam. Our over-arching portfolio management strategy is to focus on well-managed companies with strong growth prospects that are priced at reasonable valuation levels and maintain significant trading liquidity. More specifically, we seek companies with the following characteristics:
- Dominant market position: the company maintains a commanding share of a particular sector or niche
- High returns on capital: an economic returns model is built to ascertain the Return on Invested Capital of the firm
- Attractive sector fundamentals: the growth and profitability potential of the sector are thoroughly analyzed
- Appropriate levels of debt: methodical balance sheet analysis is performed to evaluate the risks associated with leverage
- Entry point at discount to intrinsic value: a variety of methodologies are deployed to determine the intrinsic value of the company
- Shareholder value maximization: consistent and predictable value created for shareholders
Portfolio construction then ensures sufficient diversification to reduce company and sector specific risks as well as to protect against inflation and devaluation. Our current asset allocation is 80% listed stocks and 20% OTC stocks that will list within a six month period. While the broad macro picture remains robust, drilling down we observe that certain sectors appear exceptionally attractive. Low penetration and per-capita spends across these sectors show just how Vietnam is at a premature stage of development with considerable room to grow.
Private Equity
ICA offers interim facility management and strategic partnerships with family offices and corporate partners, providing investment advisory services on a deal-by-deal basis to investors seeking exposure to Vietnam's private markets. ICA deploys a structured approach to making private equity investments. The investment process thereof is strictly regulated and controlled from early deal origination to deal exit.
In our mission to create value, our investment team works closely with the investee company managers to assist portfolio companies in competitiveness, efficiency and sustainability matters. In the process, we build stronger franchises, and enable our portfolio companies to achieve lasting financial and extra-financial value for our investors. The investment team provides support in vital areas such as corporate governance, financial and risk management, supply chain, process design, marketing/public relations, working capital, tax, human resources, systems and technology. We also provide operational advice to improve a company's market opportunity, achieve transformational operational change and strengthen competitiveness. We also look to take serve on the Board of Directors of portfolio companies, providing operating, governance and sustainability support.
Indochina Capital Vietnam Holdings
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