UOB Asset Management sees rapid growth

UOB Asset Management now has AUM of Bt220.51 billion, against Bt82.06 billion prior to the merger, with its market share ranked sixth place at of 5.6 per cent from 2.08 per cent, chief executive officer Vana Bulbon said yesterday.
 The company’s AUM comprise three types of fund: mutual funds, which account for Bt109.34 billion; private funds, Bt46.85 billion; and provident funds, Bt64.33 billion.
 The company’s ambition is to break into the top five in the fund-management sector in the next three years, he said.
 The merger of the two fund-management companies has reinforced UOB Asset Management’s customer-base expansion, marketing channels and fund-manager team. The company now has 28 fund managers.
 The company aims to expand its provident funds by focusing more on the private sector, which contains large provident funds, said Vana.
 Meanwhile, it plans to increase its involvement in funds that invest in bonds, such as local corporate bonds offered overseas and foreign bonds issued in Thailand.
 The company aims to provide products in markets such as Taiwan, Japan, Malaysia and Brunei in order to achieve the target of becoming a top-five player, he added.
 Korawut Leenabanchong, UOB Asset Management chief investment officer, said the company was sticking to its target of 1,650 points for the Stock Exchange of Thailand Index this year, despite market fluctuation following the US Federal Reserve’s statement that it planned to taper quantitative easing, and the tighter liquidity situation in China.
 The fundamentals of SET-listed companies remain strong, and most listed firms were not significantly affected by the stock-market volatility, he said. “We are still upbeat on the Thai stock market because the fundamentals have not changed, and the stock market has grown strongly as a result of the reduction in corporate tax.
 “Inflation is at a low level, and we estimate total operational growth of listed companies this year will be 21.9 per cent, with the dividend payment rate projected at 4 per cent,” he added.
 The company suggests that investors who can tolerate high risk and prefer long-term investment should invest further in the Thai stock market, and increase their focus on companies doing business in developed countries.