KAsset aims to grow with Investor Focus strategy Lead customers through global market turbulence with a minimum 3% return for recommended portfolios

Monday 27 January 2020 13:10
KAsset sets the target for 2020 by presenting its Investor Focus strategy to create efficient returns for investors amid the volatile global market, featuring the presentation of funds that respond to global uncertainties, the development of investment products and services to cater to the preferences of investors, especially the new generation, and recommended investment portfolios with better returns.
KAsset aims to grow with Investor Focus strategy Lead customers through global market turbulence with a minimum 3% return for recommended portfolios

Mr. Vasin Vanichvoranun, Executive Chairman, KASIKORN ASSET MANAGEMENT COMPANY LIMITED (KAsset), revealed KAsset's workplan for 2020 that KAsset has maintained its goal of being the market leader by keeping the existing customer base and reaching out to new customers. KAsset also boosts the capacity of investment via digital channels by launching new funds both general and alternative funds such as private equity funds, totaling over six funds and covering all target customer groups. Additionally, KAsset will be introducing funds with various investment policies, including bond funds, Thai equity funds, foreign equity funds and mixed funds.

Regarding the expansion of the new customer base through the Super Saving Fund (SSF), Mr. Vasin posits that there is still more room for growth, based on the number of provident fund (PVD) members in the system. There are around 500,000 PVD members with an average age younger than 45 years and the potential to invest in SSF, or translating into over 50 billion-70 billion Baht of investment value. As for an expansion of the customer base via Online Opening Account, the growth of the new generation of investors is evident by the number of new online opening accounts in the past year, showing an increase in interest of investors aged 20-30 years old who opened their online accounts via K PLUS and K-My Funds application for over 55 percent. In addition, KAsset has planned to launch SSFs to meet the demand of the new generation with specific preferences, being either competitive fees, easy-to-understand method or responding to new trends, or embracing all these three elements. Also, the investment must be easily accessible, convenient and secure.

"KAsset strives to develop new features on K-My Funds App to better respond to the investors' lifestyle by designing more than 100 patterns of personalized messages, tailored for each individual via smart notifications to update customers on the latest news and investment situations. Additionally, K-My Funds app recommends investment portfolios as guidelines for investors to diversify their asset classes appropriately per their risk appetite, increasing opportunity to make greater profits rather than focusing on only one class of assets. It is seen by the performance of the recommended FITL and FITXL portfolios last year, which generated average returns calculated on the reference index of 7.4 percent and 9.9 percent per annum, respectively. It is also found that only 15 percent of customers, who make their own investment decisions, can beat the returns of recommended portfolios, while the other 85 percent could not outperform the recommended portfolios because of the current economic situation with high liquidity and a weak growth rate, making the process of global economic recovery slow amid continuing uncertainties. Investors depend on data analysis from various sources in their considerations. Therefore, they are recommended to diversify their investment and use the recommended portfolios as investment guidelines. KAsset has set a target to manage the recommended portfolios to generate a minimum 3 percent annual return for clients, who prefer lowest-risk investment," said Mr. Vasin.

Regarding KAsset's 2019 operating performance, Mr. Vasin added that the total AUM reached 1.36 trillion Baht. That total comprised 1.02 trillion Baht in mutual funds, 177 billion Baht in provident funds and 163 billion Baht in private funds, representing 19.5 percent, 14.7 percent and 14.6 percent shares of such markets, respectively. KAsset thus remained the leader in the mutual fund market (AIMC as of December 30, 2019).

Meanwhile, the number of our digital-based users accounted for over 60 percent of the total mutual fund customers and the value of digital-based transactions reached over 300 billion Baht. KAsset has set a target to increase the number of digital-based users by 16 percent of the total mutual fund customers in the future.

Regarding the economic and investment outlook for 2020, KAsset views that the global economy will continue to be plagued by risks, stemming from the US-China trade dispute, issues surrounding Brexit, and geopolitics. However, leading countries continue to maintain easing monetary policy stances as evidence from their policy rates and liquidity injections via bond purchases with the aim of sustaining economic growth over the near term. This will likely provide a respite for investment overall. Meanwhile, the Thai stock market will continue to be attractive, compared to a net profit of listed companies projected at approximately 6-8 percent. KAsset expects that the SET index will likely touch 1,700 points in 2020, based on the forward PE ratio of 16.7 times and dividend yield of around 3.17 percent.