Dr. Pipat Luengnaruemitchai, Assistant Managing Director, Co-Head of Wealth Management Research, Phatra Securities stated that we expects global growth to recover going into 2016. However, there are downside risks to the global economy that could be triggered by the slowdown in Chinese economy, declining global trade, weak commodity prices, and possible fallouts the US Fed's policy rate hike. Thailand, along with emerging market countries, is vulnerable to those risks, capping its growth below its full potentials, as well evident over the past few years. Export contraction and falling agricultural prices are the key short-term headwinds to Thailand's growth.
He further added that stocks were known to be the best performing assets over the long term. Given the risks, it is therefore necessary to diversify investment beyond the borders. Investing in global equity opens up for growth opportunities, and at the same time, reduces the risk of the overall portfolio.
Likewise, Mr. Andy Budden, Investment Director at Capital Group, also shared his view that the markets have been volatile and could stay that way in the near term. Key areas of concern are emerging market's economic slowdown, particularly China's and US Fed policy. That's why active management is critical. Good active managers can mitigate downside risk and at the same time capture upside opportunities when markets go up. But increasingly, the received wisdom is that active managers cannot beat the market. Not all active managers are average. Some investment managers, Capital Group among them, have distinguished themselves with a proven track record of consistently outpacing broad market returns.
Mr. Yuthapol Laplamool, Phatra Asset Managing Director, added that as today'sglobal economy, including Thailand itself,is still struggling to gain its momentum, diversification?is considering the most important component of reaching long-range financial goals while minimizing risk.With such recognition, Phatra Asset has forged a partner with Capital Group in urging Thai investors an opportunity to access to ranges of Capital Group best known equity investment strategies. He further stated that with equity investment philosophy in delivering the optimum return to investor deriving from globally integrated research network of more than 350 investment professionals with a median of 27 years' investment experience, this partnership will greatly benefit to our clients as it will uplift their equity investment opportunity to the new global landscape. In the meantime, upon SEC approval, one of Capital Group's best known strategies will simultaneously be available to Thai investors.