Global equities are projected to offer the highest returns among asset classes next year, especially in Asia and China, thanks to a relatively swifter economic recovery, say TMB Eastspring Asset Management (TMB ES) and Thanachart Eastspring Fund Management (Thanachart ES), two subsidiary asset management firms under Eastspring Investment.
Mr Adisorn says foreign stocks should beat Thai stocks next year.
Adisorn Sermnchiawong, chief executive of TMB ES, said the company and Thanachart ES plan to launch a new global equity fund focusing on stocks with high potential for growth next year, including those in Asia, China and US technology funds.
Economies in Asia and particularly China are expected to grow next year and have a better economic ratio than developed markets because Asian countries are coping better with the pandemic than Western countries, resulting in a faster economic recovery, he said.
Technology-related industries will also continue to grow steadily in the future, Mr Adisorn said.
Fund managers are recommended to invest in the US, China, and South Korea markets, which have large amounts of technology stocks.
"We speculate foreign stocks will yield higher returns than Thai stocks next year as there are already a number of funds covering almost every industry in the Thai market. The funds will be reviewed again next year, especially in some of the industries with remarkable growth," he said.
Mr Adisorn said the five most interesting assets under Eastspring Investment next year include Asian and Chinese equities, US technology, global technology, renewable energy and Asian corporate bonds.
The companies have launched two new funds, including the global innovation fund, focusing on investments in technology and new normal business such as Moderna and Tesla Motor, which drew 6 billion baht. The other is a global green fund, which drew 5.7 billion baht.
For the past six months both TMB ES and Thanachart ES have attracted a combined 40 billion baht in fund inflows.
"We expect around 10 billion baht will flow into our retirement mutual fund and long-term equity fund this December," he said.
Eastspring Investment, the Asian asset management business under Prudential, acquired 65% of TMB ES in September 2018, and 50.1% of Thanachart ES in December 2019.
Eastspring Investment acquired both firms under the merger between TMB Bank and Thanachart Bank.
Mr Adisorn was appointed the top executive at the two firms on Sept 10 and will play a key role in the integration of asset management subsidiaries of the merged bank.
"Eastspring Investments plan to merge the two asset management firms in mid-2021 and will renew the company name," he said.
He said about 200 million baht flowed out of TMB ES's fixed income funds and corporate funds in March as investors took part in panic-selling of four funds during the outbreak, propelling the company to close the funds to stop redemptions. Capital funds still haven't flowed back into the company.
He said after closing the funds for six months, the company has gradually sold the funds' assets, granting unitholders the principal and some returns. TMB ES and Thanachart ES are in the process of returning most of the funds to unitholders.
"We are trying to maximise benefits for investors and prevent any damages that might occur from investing with our company. The company plans to hold an official conference in early 2021 to discuss Thailand's business strategy plan and reveal an investment outlook for next year," said Mr Adisorn.