Fund managers are optimistic about Thailand's economic recovery but still have concerns about the global economy that is expected to stabilise or deteriorate to some extent, a recent survey by the Association of Investment Management Companies (AIMC) has found.
Chairwoman Chavinda Hanratanakool said the new survey found that Thai fund managers are optimistic about the economy following the general election in mid-May. They anticipate the growth of GDP will be a positive factor influencing investment in the country.
As the economy expands continuously, it is expected that the Bank of Thailand's policy rate will be lifted slightly to 2.25% at the end of the year, from 2% now.
Fund managers view that interest rates remain at a high level to stem inflation.
At the same time, GDP growth in most major economies is slowing but the improved financial performance of listed companies is projected to support the overall economy in their home countries, she added.
For asset allocation in the next 12 months, the survey revealed that fixed income should represent about a half of investors' portfolios with a focus on short to medium-term bonds. They favour large-cap stocks in the tourism, commercial banking, commerce and healthcare sectors.
"Fund managers are focusing on fixed income assets, especially short-term to medium-term debt instruments in the US, Japan and China. For equities, they tend to have a negative-neutral view and recommend investing in large-cap stocks only," said Ms Chavinda.
Favoured industries are tourism, banking, commerce, medical services and information technology. As for alternative assets, they shared a neutral view but recommend real estate and infrastructure investment trusts, she added.
Fund managers said they will weigh investment in developed markets for asset allocation, while holding a neutral view on emerging economies.
Alternative asset investments remain moderate to less weighted, but still selective in real estate, infrastructure investment trusts and crude oil.