Mr. Jirawat Supornpaibul, Private Banking Group - Executive Chairman, KASIKORNBANK, said, "Amidst the global economic volatility, investors have to face with challenges in portfolio management. As Thailand's leading comprehensive wealth management service provider, we are committed to offering cutting-edge investment innovation with the ability to generate robust long-term returns under the principle of Risk-Based Asset Allocation. We are pleased to be presenting this global investment innovation to high-net-worth customers for the first time in Thailand with the three funds under K-ALLROAD Series: K-ALLROAD-UI, K-ALLGROWTH-UI and K-ALLENHANCE-UI. With the balanced investment proportion, portfolio management system to control risks within a preset level, and ability to generate returns across all economic situations, investors are not required to perform any executions while fund managers can simply set and adjust the target as situations change. Such experience can be compared to that of a multipurpose self-driving intelligent automobile with navigation capability across all road conditions."
Three features that enable K-ALLROAD Series funds to win over every market circumstance include:
1. Multipurpose quality, designed to navigate all economic situations: The funds invest across all asset classes, from traditional assets, such as government bonds, debentures, stocks, to alternative assets, such as commodities, instruments with returns benchmarked with inflation and market volatility. The investments are also diversified across regions and industries globally with a risk-balanced proportion and the suitability with different market conditions in each economic cycle.
2. Safety control encompassing all risk: With the automatic intelligent discipline per the Rule-based Management approach, the portfolio adjustment is implemented without the reliance on fund managers' forecast and sentiment-based decisions. Investment proportion in each asset class is determined by the balance of risks and the suitability with various marketing conditions and economic cycle. The disciplines include increasing leverage, similar to an automobile's turbo charge feature which can be turned on during the smooth road condition to quickly increase the vehicle's speed without compromise on safety. At the same time, the funds are equipped with risk monitoring systems and automatic executional functions to decrease leverage, or increase cash position, similar to the vehicle's sensor that can detect nearby obstacles and decrease speed to prevent accidents. In addition, the funds' Drawdown Management can act like an airbag for damage control, enabling them to mitigate the loss impacts to be within the preset level, in case of economic crises or high market volatility.
3. Setting goals based on risks: Investors can choose between three funds: K-ALLROAD-UI, K-ALLGROWTH-UI and K-ALLENHANCE-UI, each with different risk levels.
K-ALLROAD-UI K-ALLGROWTH-UI K-ALLENHANCE-UI Target return Cash +4%Cash +7%Cash +9%Expected volatility 5%9%12%Maximum 1-year drawdown budget 10%17.5%22.5%Expected leverage exposure 1.4-1.6X2.4-2.8X3.0-3.6XSource: Lombard Odier (as of 15 April 2022)Mr. Jirawat added, "Since the establishment of three funds under K-ALLROAD Series, which invest in the international master fund LO FUNDS - ALL ROADS Series, the funds have generated stable returns and smooth control of volatility. With the concept "Self-Driving on All Roads", KBank Private Banking is confident that the investment strategy can consistentlygenerate expected returns across economic cycles. We also expectK-ALLROAD Serieswill deliver high returns with the maximum 1-year drawdown, as per expected."
LO FUNDS - ALL ROADS SYST. NAV HDG, (USD) I LO FUNDS - ALL ROADS GROWTH, SYST. NAV HDG, (USD), I Class ALO FUNDS IV - ALL ROADS ENHANCED, (USD), I CLASS A Fund inception year 201220172020AUM (as of 31 March 2022) 2.55 billion USD573 million USD156 million USD Annual return 4.50%7.30%9.50%Actual volatility 4.50%7.80%11.50%Maximum drawdown 8.50%14.50%18.10% Source: Lombard Odier, Bloomberg (as of 15 April 2022)Mr. Vincent Magnenat, Limited Partner and Chief Executive Officer, Asia, Lombard Odier said, "We are very honored to witness the progress of our All Roads investment strategy made possible through our Strategic Alliance with Kasikornbank. As one of the first few Strategic Alliances that we formed in Asia, our collaboration has helped provide clients with access to global offerings and expertise, such as the All Roads investment strategy."
"In today's volatile and complex world, investors look for a smooth journey no matter the market conditions. This is the 10th year since our All Roads strategy launch. Tried and tested through a decade of change, this multi-asset strategy is designed to strategically diversify across a wide range of asset classes and adjust capital and risks according to market conditions, to ensure stability over the long term."
Mr. Jirawat concluded "KBank Private Banking is with EVme, the first and only Electric Vehicle (EV) lifestyle platform in Thailand, to connect investment innovation with autonomous vehicle technology. Under the concept of 'Self-Driving on All Roads', the partnership will allow customers to try the self-driving experience themselves, reinforcing the cutting-edge position of K-ALLROAD Series, the self-driving funds that can take investors to their destinations conveniently and safely across all market situations."
Source: Kasikorn Bank
