KSAM targets 13% growth of AUM to keep position

KSAM targets 13% growth of AUM to keep position

Krungsri Asset Management (KSAM) targets increasing its assets under management (AUM) by 13% this year, aiming to retain its top five position in the mutual fund industry.

That growth target amounts to 525.8 billion baht, said KSAM managing director Siriporn Sinacharoen.

There are several fund segments that will help achieve the company's growth target, such as equity funds, debt securities funds, provident funds, and private funds, said Ms Siriporn.

The company is also in the process of developing a mobile application for investment information with Japan's Mitsubishi UFJ Financial Group to expand its customer base, she said.

Last year's AUM registered at 474 billion baht, up 31.2% year-on-year, surpassing the mutual industry's average growth of 9.22%.

Siriporn: Several funds to contribute

Businesses in each segment recorded rapid growth last year, particularly in the private fund segment, where growth skyrocketed by 101%, said Ms Siriporn.

Growth in the mutual fund and provident fund segments registered growth of 22.2% and 33.2%, respectively, she said.

Ms Siriporn said the top five net fund inflows in 2017 comprised three fixed-income funds at 25.1 billion baht and two equity funds.

Supaporn Leenabanchong, KSAM's chief investment officer, said the company believes Thailand's economy will continue growing this year, supported by exports and tourism bolstered by the global economic recovery.

Public investment in infrastructure development projects is also expected to shore up private consumption, said Ms Supaporn.

KSAM expects the Bank of Thailand's Monetary Policy Committee to stand pat on the policy interest rate throughout this year as inflationary pressure remains low.

The government bond yield is expected to move narrowly in the first quarter, but financial volatility is anticipated due to interest rate normalisation by the US Federal Reserve, she said.

KSAM has a positive outlook for medium to long-term investment in bonds because of the low interest rate environment, continuous economic growth momentum, and the projection for SET-listed firms' earnings to keep growing.

Ms Supaporn said this year's investment strategy is tailored for a medium risk appetite with an expected return of around 10%.

Investors are recommended to invest 65% in stocks (33% local, 22% global, and 10% in emerging markets), with 35% investing in bonds, of which 20% should focus on quality corporate bonds and 15% on global bonds, she said.

The SET index is expected to reach 1,900 points at the end of this year, with a downside projection of 1,732 points, said Ms Supaporn. Stocks related to exports and tourism are among those with good growth potential, she said.

BBL Asset Management (BBLAM) yesterday launched its China equity fund, with a target to invest in all Chinese stocks including those in mainland China and those listed outside Chinese stock exchanges.

BBLAM chief executive Peerapong Jirasevijinda said China's GDP represents around 15% of global GDP and it is expected China will become the world's largest economy.

China's stock exchanges have a total market capitalisation of US$12 trillion (378.5 trillion baht), larger than the combined capitalisation of euro-zone bourses, said Mr Peerapong.

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