Krungsri Asset eyes 20% growth

Krungsri Asset Management, a unit of Bank of Ayudhya (BAY), targets growth of assets under management (AUM) of 20% to 185 billion baht, adding 165,000 accounts this year.

The company finished 2012 with AUM of 153 billion baht, up by 45% from 2011 and beating the industry average of 21%.

Mutual funds hold the bulk of the assets at about 100 billion baht, with private fund business at 30 billion and the rest provident fund business.

The number of customers last year grew by 54% from 2011 to 120,000 accounts.

"Our target customers remain BAY clients, as they contributed 40% or 60 billion baht of our total," said chief executive Chatrapee Tantixalerm.

He said the company plans to relaunch products and offer a new equity target fund to serve demand from BAY's customers.

Another goal is to develop an online channel, as those transactions represent 42% of the total for BAY.

Meanwhile, Krungsri Asset remains confident in the Thai equity market even though its price-to-earnings (P/E) ratio has vaulted this year.

Prapas Tonpibulsak, the chief investment officer, said the P/E ratio of the Thai bourse was at 19.26 times.

"I think the SET index will likely break its all-time high this year. Its market price per book (P/B) is 2.55 times with a market cap of 12.7 trillion baht, so I don't think this is the peak yet," said Mr Prapas.

He believes the SET will peak at a P/B of about three times, translating to about 2,000 points for the bourse or a market cap of 19 trillion baht.

Mr Prapas said although medium and small cap shares are highly volatile, the overall outlook is positive.

"Lower market fluctuation will benefit the mutual fund industry, as a steadier index will lessen new investors' fears," he said.

About the author

Writer: Darana Chudasri
Position: Business Reporter