Bangkok--29 Jan--KAsset
Kasikorn Asset Management Co., Ltd. unveiled its 2015 business direction under new chief Vasin Vanichvoranun, who expressed confidence that KAsset will stay on top with a focus on service channels, investment advice and diverse products.
Mr. Vasin Vanichvoranun, Executive Chairman of Kasikorn Asset Management Co., Ltd. (KAsset), said that the company managed to maintain its top spot in the asset management business in 2014, with net asset value of 1.09 trillion Baht, or around a 21-percent market share, a significant rise from 2013’s 14 percent. It was also the seventh consecutive year in which KAsset dominated the market for mutual funds, provident funds, LTF/RMF, money market funds and foreign investment funds (FIF). KAsset’s 18 FIFs, in particular, have shown strong performance, securing over 44 percent of the market with combined net assets of over 93 billion Baht; its FIFs are based in many markets across the globe, i.e., the US, EU and Asia, and are reporting impressive operating results.
“KAsset plans to maintain our leadership in the asset management business and has estimated that it will achieve total net asset value of 1.2 trillion Baht by the end of this year. To this end, we will execute three major tactics that cover the whole spectrum of business operations, namely, connecting, advising and investment. We will connect with customers through our fully-integrated services which are obtainable from KBank branches, selling agents and electronic channels. In collaboration with KASIKORNBANK’s K-Expert team, KAsset will focus on providing investment advice, while ensuring that other communication channels, including the K-Contact Center, websites, and other media, can efficiently disseminate information about our products, providing knowledge and creating understanding among investors. We will continue our good work in investing by offering a wide variety of products and developing innovations that respond better to the needs of investors from all walks of life,” said Mr. Vasin.
Regarding the outlook, Mr. Vasin stated that the global economy will benefit noticeably from low oil prices, as well as fund injections by the European Central Bank (ECB) and Bank of Japan (BOJ). In consequence, the world economy may grow 3.0 percent. Meanwhile, US monetary measures contrasting those of the ECB and BOJ will support consistent dollar appreciation. Nonetheless, issues that warrant close monitoring, including political conflicts in Ukraine and Greece, are likely to cause global investments to be more volatile overall, compared to last year. Therefore, KAsset’s strategies will focus on investing in countries with growth potential reliant upon central banks’ contributory monetary policies.
As for the Thai economy, Mr. Vasin said growth is expected to reach 4.0 percent since plunging oil prices are conducive to our economic expansion. Moreover, the government’s stimulus measures and budget disbursement plans will enhance consumer sentiment and encourage spending and investment in the private sector. However, energy-stock performance should be watched closely, as oil prices may impede listed companies’ profit growth in 2015. KAsset expects the SET index to stand at around 1,700 points by the end of this year. KAsset also maintains its positive view towards investments in equity instruments, due to supportive factors like an improving economic growth rate, low inflation and abundant liquidity resulting from QE measures of leading central banks, despite slight instability caused by both internal and external factors. Additional positive factors can be seen in some improved indices in recent periods, being supported by expectations of economic progress. Looking ahead, fundamental factors like company performance and government policies will have major effects – both positive and negative – on stock prices. Therefore, investment plans should focus on investing in those entities expected to benefit from public policies and domestic economic recovery. For investment in debt instruments, KAsset has assessed that policy and deposit interest rates will remain low on the back of low inflation due to oil prices. Mr. Vasin finally added that easing monetary policies supportive of the economic recovery, low inflation and adequate liquidity within the banking system, should have a positive effect on interest rates within this year.