Krungsri Asset to miss its AUM target
Thailand's most updated English news website, newspaper english, breaking news : The Nation
Krungsri Asset Management expects its assets under management (AUM) total to miss this year’s target of Bt324 billion due to the economic slowdown, and the other asset management firms are also experiencing the same problem.
Nevertheless, the firm’s AUM currently stands at Bt302 billion |as of September, which represents |an expansion on the Bt270 billion |it posted at the beginning of the |year.
Alan Chi Yim Kam, Krungsri Asset’s director and acting managing director, said the firm expects Bt40 billion to flow out from the |firm as two of their investment |officers left their position at the beginning of the year but the latest assessment has shown that the amount of expected assets losses is minimal and the AUM is still larger than it was during the same period last year.
"We expect to lose about Bt40 billion from the reassignment of the managers but only a small amount has flown out since that day from our talks with agents, customers and foreign institutions, and they have shown their confidence in our firm," he said last week.
"Meanwhile, we expect to miss our target AUM of Bt324 billion this year due to the slowdown in the economy but we are still pushing for it with the expected introduction of more products before the end of the year," he added.
The Krungsri Asset director said the long-term equity fund (LTF) and retirement mutual fund (RMF) sectors are expected to do well in the last quarter of the year as people are looking for tax benefits and Krungsri Asset is looking to dust off some of its LTF and RMF funds by adding foreign investment funds (FIF) into the mix in order to step away from the continuous fluctuations in the Thai market and seek a better return abroad.
As a result, the firm expects a flow of around Bt7 billion into their LTF and RMF before the end of 2015 and they are planning to launch one FIF fund to support this development where the process is now subject to approval by the Securities and Exchange Commission.
He also revealed that Krungsri was still planning to concentrate |on investment in foreign funds |next year and the FIF funds that |have gained the most attention |from its customers this year are its health care and Japanese equity funds.
