Krung Thai Asset Management aims to lead in property funds and boost assets under management by 20% this year to 516 billion baht on positive overall investment climate, said CEO, Somchai Boonnamsiri.
As the Thai billionaire Charoen Sirivadhanabhakdi plans to raise funds through the property funds managed by KTAM, the capital increase will turn KTAM into the leader of this type of fund and put it in the forefront in terms of assets.
It managed assets worth 429 billion baht as of the end of last year.
Besides property funds, fixed-term funds being launched weekly as rollover options for existing customers will also add to its assets.
This types of funds are popular because their risks and yields are reasonable.
The new markets that can be invested are Brazil and Mexico as well as some European countries. Return for short-term investment is expected at 3.5% or around 1 % higher than local return.
KTAM also plans for selling ETF in the Stock Exchange of Thailand in the sectors such as energy, food, ICT, and commercial sector.
For property funds, it will increase the capital of property funds of TCC group of Sirivadhanabhakdi group to as high as 50 billion baht.
In 2013, is the last year that the Securities and Exchange Commission (SEC) will allow to investment in property type1 as currently there is new type of property find, Real Estate Investment Trust, to replace the old property fund type 1.
Mr Somchai said the market will offer new property fund worth around 150 billion baht this year.
For the private fund, the company focuses more on expanding the customer base to the private sector and bank customer group.
Also, Mr. Somchai Boonamsiri added that the company is going to launch Krung Thai 8% Trigger Fund9 (KT-TRIGGER9) launching today until Feb 11. This project capital is 3 billion baht. Minimum value for subscription is 10,000 baht.
It hopes to maintain the top three in term of market share for the mutual fund industry by applying the strategy in selecting the undervalued asset based on fundamental factor, with the capability to earn profit growth in time of economic uncertainties, and benefit from increased domestic consumption and investment.
The company targets the SET index this year at 1,575 points on continuous capital flows into Asia, while the US economy begins to recover as its stock index records a five-year high.