Tuesday, August 11, 2020

Krungsri Asset Management recommends investing in Chinese funds for long-term profit

Jun 09. 2020
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By The Nation

Krungsri Asset Management said the Chinese stock market will generate good returns in the long term as the country’s economy has already bottomed out.

Kiattisak Preecha-anusorn, assistant vice president for alternative investment at Krungsri Asset Management, said China’s stock market has recovered by 10 per cent after the Covid-19 crisis led to a 15 per cent market plunge.

“Therefore, we believe the Chinese stock market has already bottomed out,” he said. “China’s economy has recovered quickly due to various government measures and public cooperation in containing the spread of Covid-19.”

Kiattisak expects the global economy to "grow at a low level", while interest rates are also likely to be low for a long time to come.

“So we advise investors to seek strong investment themes, such as ‘New China’ that would meet investors’ needs,” he said.

According to him, the UBS Investment-China A Opportunity, the Krungsri China A Shares Equity-A (KFAChina-A) master fund, has seen outstanding performance.

“In 2019, this fund generated returns of more than 50 per cent [source: Morningstar Thailand, December 30, 2019],” he said.

“As of April 30 this year, the Krungsri China A Shares Equity-A fund had assets under management of Bt5.61 billion, while returns from the beginning of the year to the present were a contracted 4.57 per cent but 2.43 per cent in the past year.”

Meanwhile, Vivien Ng, an investment specialist at UBS Asset Management, said the two factors that have accelerated Chinese economic growth are an increase in premium products and services consumption and continuous development of innovations.

Navin Intharasombat, first senior vice president for foreign investment management at Kasikorn Asset Management, said the company will also offer the K Foreign Fixed Income 6MQ Fund Not for Retail Investors (KFF6MQ-AI).

“The fund’s return is approximately 1.30 per cent per year,” he said. “The initial public offering will be made from June 9 to 15.”

Krungthai Asset Management chief executive officer Chavinda Hanratanakool said the company would additionally offer the Krung Thai Smart Invest 6M3 open-end fund until June 12.

“The project duration is approximately six months, focusing on investment in government, commercial bank and Thai corporate bonds,” she said “The fund’s return is approximately 0.40 per cent per year.”

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