Client lifestyles to drive Tisco provident fund growth

“This year, we continue to concentrate on quality in our products and services, which will play a major role in creating and designing customers’ wealth,” president Araya Thirakomen said yesterday. “For provident funds, we will emphasise ‘Employee’s Choice’ to reach customers in more depth. Customers can opt for investment policies to suit their lifestyles.”

This year the company’s total AUM is expected to increase to Bt161 billion from Bt135 billion last year, she said. 

She expects its mutual funds to expand by 30 per cent from the current Bt15 billion, provident funds by 13-15 per cent from Bt80 billion and private funds by 16 per cent from Bt38 billion.

This year’s strategy is to create wealth through designing a range of financial products to meet customer demand, particularly for provident funds. 

Tisco manages provident funds for 2,975 companies, or one-fourth of all companies, with AUM up 10 per cent from last year to Bt85.03 billion.

The company will respond more to customer demand through product development and services in the form of “Employee’s Choice” and each fund member’s lifestyle, Araya said. More knowledge will be provided and investment channels will be developed to facilitate fund members and maintain the company’s leading role in this market, she added.

Kaekwan Rojwattanakul, head of marketing for provident funds, said the Tisco Master Pooled Fund, which manages funds from multiple employers, had succeeded in expanding 115 per cent to Bt18.33 billion and acquiring 853 accounts, up more than 200 per cent from its start on July 1, 2009.

The Tisco Master Pooled Fund offers investment alternatives, including short-term fixed income, fixed income, equities, and mixed investment with no more than 20 per cent in stocks. This year will see more choices such as gold. 

“Based on a study of fund members’ requirements, some of them were particularly interested in gold. It’s seen as an investment opportunity for long-term return, besides equities, which some saw as too risky. So we plan to introduce a gold-investment policy, which is now being established, for our members,” she said.

Araya said the company had set its provident fund’s growth target at 10-15 per cent and new-account target at 350-400 employers despite high competition. Tisco will count on quality products and services instead of low commissions.

The company is developing a website for its members to switch funds or select their own investment policies with e-mail notification. The menu of services is expected to be launched in the second half.