TMBAM Eastspring and Thanachart Fund Eastspring are preparing to launch four new funds to invest in ARK Investment, the company whose master fund recorded the highest growth and returns worldwide last year, as TMBAM ES is bullish on innovation and technology.
"We believe a fund focusing on innovations will continue to grow in the future. We are preparing to open four equity funds to invest in ARK Investment to provide long-term investment and diversification opportunities for our customers," said TMBAM ES chief executive Adisorn Sermchaiwong.
In the past 5-10 years, the increasing role of technology in the entertainment, communications, tourism, medical and financial sectors has changed people's behaviour and needs, he said.
ARK Investment believes investing in disruptive innovation is key to growth. It focuses on creating investment opportunities in tech companies with potential for exceptional innovation and excellent performance, especially during the pandemic when these companies are benefiting greatly from changing lifestyles.
However, as tech stocks recently tumbled because of steeper US bond yields and the US stimulus package, which made some investors fearful of inflation, these tech firms may experience higher loan costs and a decrease in their future profits.
"We estimate the supporting factor that will drive risky assets to grow and keep them attractive is the recovery, as all countries continue to inject money into their economies," said Mr Adisorn.
The new TMBAM ES ARK series offers both exchange-traded funds and fund of funds focusing on four important tech trends.
First is the Internet of Things, which benefits from the shift of infrastructure bases from hardware and software to the cloud, enabling businesses to provide services through online channels such as websites that are better suited to new lifestyles.
Second is genomics, or the modification of genes for the treatment of critical diseases.
Third is fintech or financial innovations that facilitate the transfer of money with lower costs and reduce the role of intermediaries.
Fourth is automation tech and robotics, which are becoming more widely used by companies to boost efficiency and reduce labour costs.
However, most of the new tech and innovation stocks are startups with high volatility. They normally fluctuate in a range of 10-20% and 30-40%, respectively, in times of crisis.
TMBAM ES recommends investing 5% in these risky stocks for conservative investors, 10-15% for moderate investors and 20-25% or more for aggressive investors.