The private fund industry is expected to post continued growth this year as demand surges for wealth management and foreign investment emerges as a trend, say fund managers.
In 2023, the industry expanded 10.6% year-on-year with assets under management (AUM) increasing 204 billion baht to 2.17 trillion, most of which was with institutional investors.
According to the Association of Investment Management Companies (AIMC), as of November 2023, 23 investment management companies offered private fund management services totalling 4,256 funds, an increase of 80 funds from 2022.
In terms of net inflows to private funds, One Asset Management reported AUM surged 43.7% to 62.9 billion baht last year, while Talis Asset Management posted an AUM gain of 42% to 42.8 billion.
Krungthai Asset Management reported AUM increased 39.4% to 63 billion baht, followed by SCB Asset Management, whose AUM rose 20.9% to 648 billion.
UOB Asset Management posted an AUM gain of 25.5% to 55.9 billion baht.
Four asset management firms reported a lower AUM: Bangkok Capital, Xspring Asset Management, Kasikorn Asset Management and Kiatnakin Asset Management, whose AUM fell by 12.8%, 25.4%, 0.77% and 1.9%, respectively.
AIA Investment Management (Thailand) held the highest market share in the private fund industry, with AUM of 730 billion baht, representing a 33.6% share.
Most of the assets were from AIA Thailand, the country's leading life insurer, which included unit-linked life insurance policies.
SCB Asset Management ranked second with AUM of 648 billion baht and a market share 29.9%, followed by Kasikorn Asset Management with AUM of 187 billion and a 8.62% market share.
Krungsri Asset Management ranked fourth with AUM of 118 billion baht and a 5.45% market share, followed by Tisco Asset Management with AUM of 74.8 billion and a 3.45% share.
The AIMC said the increased value of private funds last year was attributed to corporations, government institutions, insurance companies, universities and savings cooperatives.
Personal income tax collection on income from overseas investment transferred back to Thailand, which takes effect this year, is not expected to affect the private fund industry much as not many individuals invest overseas via private funds, said the association.
"The new rule is likely to have a positive impact on the mutual fund business because several groups of investors will opt to invest through mutual funds, which are not subject to the tax," AIMC noted.