Equities still attractive despite volatility

"Investors have to be more selective when it comes to investment in stock markets this year since there are always opportunities everywhere," managing director Ratch Sodsatit said yesterday.

The capital market will be even more turbulent this year from the divergence in the monetary policies of major economies and unexpected actions from central banks like the decision of the Swiss National Bank to scrap the 1.20-per-euro ceiling on the franc.

Other risks are the possible defaults of Greece and US shale oil producers and the possible Russian military response to sanctions,

"We will use our expertise in stock selection strategy and perspective on investment in foreign equities to help us meet our target AUM (assets under management) this year," he said.

Last year, Asset Plus Fund Management launched 13 mutual funds, raising Bt6.8 billion. Its AUM rose 11 per cent to Bt30.96 billion, divided 72 per cent into mutual funds and 28 per cent in private funds. This year it plans to roll out 12 mutual funds to boost its AUM by 20 per cent to Bt37 billion.

The company will focus on global equity funds this year, especially stocks in the US, Europe, Japan and China. The US’ capital market has room to expand from the apparent recovery of its economy at an expected rate of 3 per cent.

The US economy is gathering momentum and many economic indicators have shown signs of improvement including the purchasing managers index, new home sales and nonfarm payroll.

The US’ unemployment and consumer price index are also expected to improve from 6.15 per cent last year to 1.6 per cent this year and from 5.5 per cent to 1.5 per cent, respectively.

The market consensus is for the US to hike its interest rate in October, but it could be later than that if oil prices and the forecast for global GDP fall any further.

Asset Plus is keen on US housing, real estate, technology and healthcare stocks.