“During the past six months, KAsset was able to achieve satisfactory results in its mutual fund management and to make consistent dividend payments to investors. Such success was observed in 27 FIFs, Thai equity funds and property funds, which delivered a total of more than 4 billion Baht of dividends. Amid worldwide market volatility in 2015, KAsset funds invested in different regions have yielded different rates of returns, for example 19.01 percent from K-JP and 8.04 percent from K-ASIA. For most FIFs under KAsset management, the average return stands at 10 percent. Given KAsset’s diverse funds invested in different regions, investors can choose to invest in funds according to their needs at appropriate opportunities”, said Mr. Vasin.
Mr. Pongpichet Nananukool, KAsset Managing Director, said that the company’s plans and strategies for 2H15 will continue to focus on global investment. The company’s leadership in the international mutual fund market, thanks to a myriad of products offered and investment globally diversified, has offered opportunities for KAsset mutual fund managers and investment analysts to exchange their perspectives on global economic and market conditions with leading mutual fund managers around the world, at all times. As a result, they are ready to capitalize on their expertise and experience in global investment to enable KAsset to become a lead regional player through direct investment within ASEAN amid the imminent ASEAN Economic Community towards the end of this year. KAsset began related preparations in early 2014 by forming work teams to meticulously study stock market conditions and analyze over 150 stocks of four major ASEAN countries, namely Indonesia, Malaysia, Vietnam and the Philippines. Given this, the company is ready to introduce a mutual fund investing in ASEAN stocks, or K-AEC, during the final quarter of this year, and has also set the goal of becoming a leading investment firm within ASEAN.
“Apart from answering various investor needs, the firm aims to offer a raft of investment products both in asset types and geographic regions, as well as to branch out into other sectors and several index funds, which will invest in specific countries or in certain industrial sectors. In addition, the firm has developed its service system to keep up with technological advancements and investors’ need to be able to invest from every channel. The new service, called the ‘DIY Target Fund’, was recently launched at K-Cyber Invest, offering investors a platform where they can plan their own investment. This example illustrates our commitment to developing new products alongside service system upgrades. Customers are pleased to have the choice in their hands, and can make quick investment decisions in every circumstance without missing their window of opportunity,” said Mr. Pongpichet.
As for the economic and investment outlook in the second half of this year, KAsset’s investment management team executives believe that the global economy is likely to grow at a gradual pace, led by the US economy which is expected to see better growth compared to other developed countries. Negative factors that require close monitoring, for they may trigger market volatility in 2H15, include vulnerabilities in China’s stock markets, Greek debt issues and a potential US Fed interest rate hike. KAsset’s investment strategies are focused on adapting in order to cope with growing risks in 2H15, and increasing investment in markets that maintain suitable prices, such as Asia, Europe and Japan, since
these markets contain growth-conducive factors, e.g., central banks’ quantitative easing measures, recovery of business revenues, etc.
As for the economic outlook, GDP growth forecast for 2015 is expected to be cut further. KResearch and KAsset project growth of 2.8 percent. Factors favorable for stock market gains and positive sentiment towards the Thai economy will come from speedy government budget disbursement and investment in infrastructure projects, as well as abundant liquidity in the global market. On the other hand, negative factors warranting a close watch include the drought which may affect Thailand’s economy in the upcoming period, and unclear growth prospect for the global economy that can impact recovery in the export sector. In the second half of this year, investment strategies should focus on stocks that will benefit from government policies, such as construction, exports, tourism and telecommunications.
KAsset expects the Thai stock index to stand at 1,600 points by the end of 2015, with 16x forward P/E. For bond investment during 2H15, KAsset expects that the policy rate will continue to stabilize at a low level. Short-term bond yield is likely to remain low or may edge further downward, while long-term bond yield may increase, in line with foreign capital flows. KAsset recommends increasing investment term for short-term bond fund, in order to generate suitable returns. For other bond funds, investors should consider the current situation before making any decision and adjust investment plans to suit each scenario, as well as increasing investment in quality corporate bonds in order to raise yield opportunity.
Fund Past Performance
3 Months 6Months 1Year YTD
K-ASIA 5.55% 8.55% 10.29% 8.04%
Benchmark 10.55% 16.5% 10.32% 15.76%
K-JP 8.27% 17.00% - 19.10%
Benchmark 8.14% 19.15% 20.42% 20.67%
Source: KAsset, 26 June 2015