KAsset looks to push AUM to Bt900 bn

Chongrak Rattanapian, executive chairman, said yesterday that KAsset’s AUM were expected to stay relatively flat this year as commercial banks have periodically mobilised deposits to expand credit and competition has intensified in the fund-management industry.
The company’s AUM rose from Bt846 last year to Bt852 billion in the first seven months of this year, divided into Bt635 billion for mutual funds, Bt135 billion for provident funds and Bt64 billion for personal funds.
KAsset had targeted Bt1 trillion in AUM this year before the market situation changed.
“The economy’s growth is expected to slow down this year. The company has lowered its forecast for the country’s growth to 4.0 per cent from 4.9 per cent,” Chongrak said.
Its target for the Stock Exchange of Thailand’s main index remains at 1,590 points this year.
For the rest of this year, KAsset will focus on a variety of products with expected high returns, particularly fixed-income term funds and infrastructure funds.
KAsset will launch its open-ended K-European Fund with subscription open from August 16-23. K-Europe will invest in the Allianz Europe Equity Growth Class AT-EUR Fund managed by Allianz Global Investor, a part of Allianz Group.
Allianz’ Bt180-billion European fund, with a 10-year average annual return of 13.85 per cent, focuses on companies listed in European Union countries such as the United Kingdom, France, Germany, Sweden and Denmark. The MSCI Europe’s average annual return was 6.48 per cent.
“Now is the right time for investment in stock markets in Europe again as next year could see more positive developments in the European economy,” he said.
The International Monetary Fund forecasts European gross domestic product to expand 0.90 per cent next year.
The European economy is expected to grow slowly and consistently with cheap stock prices, Chongrak said.
MSCI Europe’s current price-to-earnings ratio is 12 times, lower than its 10-year average of 13.9.