Kasikorn Asset Management's assets under management (AUM) this year are projected to be on a par with last year's 1 trillion baht despite first-quarter AUM value dropping by 70 billion baht on the back of panic-selling ignited by the coronavirus pandemic.
Vasin: This year's AUM put at B1tn
KAsset's total AUM is currently about 930 billion baht, as some funds have been closed and market valuations are lower, in line with the overall picture occurring in Thailand's mutual fund industry, said Vasin Vanichvoranun, executive chairman of KAsset.
Thailand's mutual fund industry saw a 15.3% drop in total assets in the first quarter from year-end 2019, with most of the outflows deriving from fixed-income funds, according to Morningstar Thailand.
Most of the net outflows worth 390 billion baht came from fixed-income funds, while the majority of net inflows worth 105 billion baht were into money market funds.
Net assets of the domestic mutual fund industry totalled 4.6 trillion baht at the end of March, according to Morningstar Thailand.
Most of the largest funds saw their net assets drop by more than 20% from last year's final quarter.
The viral outbreak is a key factor that shocks the stock and bond markets worldwide, resulting in a sharp drop in investment returns, Mr Vasin said.
The domestic situation has become better due to the lower number of daily infections and containment measures imposed by the government to tame the contagion, he said.
Still, both the stock and bond markets are marred by heightening uncertainties and dejected investment sentiments, reflected through the Stock Exchange of Thailand index declining by 20% on a year-to-date basis.
KAsset advises a long-term investment strategy through multi-asset diversification in both high-risk and secured assets.
For secured assets, the firm recommends in money market funds which generate a lot of liquidity with low volatility. For higher risk investment assets, it recommends investment made in the extra unit of Super Savings Fund, which invests in domestic equities and allows investors to receive a tax privilege of up to 200,000 baht.
Chinese equities are also suggested as the coronavirus outbreak in China has subsided and a recovery is on the way, according to KAsset.