Kasikorn Asset Management (K-Asset) is partnering with J.P. Morgan Asset Management (JPMAM) to expand its mutual fund business in the Thai market in line with the positive growth of the Thai wealth segment.
K-Asset, the industry's No.1 asset management company in terms of both customers and assets under management (AUM), on Wednesday announced it would collaborate with JPMAM under a strategic partnership to develop products and services for Thai investors.
The cooperation also includes investment innovation development which enhances global asset allocation capabilities.
Under the collaboration, K-Asset will focus on multi-asset investment solutions offering a risk-based allocation strategy for local investors.
The innovative investment solution will offer greater opportunity for customers to invest in diverse assets worldwide in accordance with investment objectives and risk appetite.
Under the strategy, clients will have a greater chance of getting higher returns and managing portfolio risk amid higher uncertainties, said K-Asset executive chairman Adisorn Sermchaiwong.
The investment portfolio of Thai investors, at around 60%, has been affected by several uncertainties including global economic slowdown, money and capital market volatility, and the pandemic.
Suitable asset allocation and risk diversification are necessary, he said.
Moreover, the company also focuses on sustainable investment to strengthen customers' investment portfolios over the long term.
"Multi-asset fund is a leading global investment solution which K-Asset introduces to the Thai investors. Under the collaboration with JPMAM, we expect to grow the AUM of the multi-asset fund to 100 billion baht in three years," Mr Adisorn said.
K-Asset plans to restructure existing mixed-asset funds to the new multi-asset funds, which focus on wealth customers, by investing in sophisticated assets.
Its AUM for mixed-asset funds is around 20 billion baht, representing 1-2% of the company's total AUM.
Meanwhile, the AUM of JPMAM's multi-asset funds tallied 580 billion baht, representing 20% of the company's total AUM.
Dan Watkins, chief executive of Asia-Pacific JPMAM, said the company has operated its business in Thailand since 2014, and expects high growth potential of the Thai market in the long term in line with the growth of the Thai wealth segment.
"We are thrilled to be forming a strategic partnership with K-Asset to deliver world-class solutions for investors in Thailand, while K-Asset has been our long-standing partner in the Thai market," he said.
Given the international expertise and experience of JPMAM along with the strong network and customer base of K-Asset, the business partners would help to expand the business positively.
Apart from Thailand, JPMAM has a presence in Singapore, Hong Kong, Taiwan, China, South Korea and India, Mr Watkins said.