Krungthai Asset Management (KTAM) plans to increase its assets under management (AUM) by 10% this year, supported by solid returns from sustainable income funds and mixed asset funds.
"KTAM aims to increase our total AUM to 878 billion baht, as we plan to offer a new fund that is suitable for current market conditions and can generate [good] returns, such as real estate investment trusts (REITs), property funds and mixed asset funds," said chief executive Chavinda Hanratanakool.
Chavinda: Watching tourism, election
For new investment products in 2019, KTAM plans to launch Krungthai Strategic Active Global Allocation (KT-SAGA) next month.
The fund has a policy to invest in at least two global exchange-traded funds (ETFs), which have been investing in indices related to stocks, bonds, property funds and REITs, as well as gold and oil.
"The fund is suitable for investors who want to diversify investment assets into the global markets and eye an opportunity to receive higher return for medium- to long-term investment," Mrs Chavinda said.
KT-SAGA remains in the approval process from the Securities and Exchange Commission.
"KTAM plans to launch at least five new funds this year in various asset classes," Mrs Chavinda said.
KTAM's AUM rose by 8.7% year-on-year or 62.14 billion baht to 776.38 billion last year, outperforming the mutual fund industry, which grew 3.4% on average.
Some of the major net AUM inflows of KTAM came from property funds and the Thailand Future Fund.
KTAM's provident fund value increased by 15.1% year-on-year to 99.12 billion baht.
New clients emerging last year were identified as state-owned enterprises and the private sector, such as the Bank for Agriculture and Agricultural Cooperatives, Chulalongkorn University's employee provident fund, Thai Union Group's employee provident fund and Airports of Thailand's employee provident fund.
For mutual funds, growth slightly declined by 0.4% year-on-year on the back of high volatility in the global stock markets and lower market valuation.
KTAM forecasts the SET index to reach 1,800 points this year, with the US-China trade disputes and the success or failure of Britain's EU exit identified as the main external risk factors.
Lower Thai exports are projected to be the main domestic risk, while Thailand's tourism recovery and the general election are watchful factors in 2019, Mrs Chavinda said.
For domestic investment strategy, KTAM will focus on domestic plays or stocks generating their revenue from private consumption and investment projects, such as banking and commerce equities.
For bond investment, KTAM expects global bonds to generate higher returns than Thai bonds, but pressure from the US-China trade disputes, oil prices and inflation are risks that warrant further monitoring.