New exec at Kasikorn fund firm expects AUM to hit Bt1 tn
Kasikorn Asset Management Co's newly appointed executive chairman, Chongrak Rattanapian, forecasts assets under management (AUM) to touch Bt1 trillion this year on expectation of the Stock Exchange of Thailand reaching 1,550-1,600 points.
He said his appointment came as a normal transition, given his experience in the asset-management industry.
He said AUM last year grew by 15 per cent to Bt846 billion, maintaining the company’s status as the industry champion. It has about 800,000 customers.
The company’s mutual funds expanded by 20 per cent while the provident funds grew 15 per cent.
“This year, the company’s AUM is expected to rise 19 per cent, close to the industry average, driven by the existing customer base, its close connection with its parent Kasikornbank, brand strength and investors’ confidence. With that expectation, the company will be the first [in Thailand] to have Bt1-trillion AUM,” Chongrak said.
This year’s business strategy continues to focus on offering various products to meet demand of three major customer groups.
The first group consists of those who maintain the principal. The second comprises those who invest for asset growth and focus on risk mitigation abroad. The third is those who invest for retirement.
Currently, the company has nearly 500,000 customers who are members of provident funds or investors in retirement mutual funds; the latter group has total assets of about Bt63 billion.
“The company aims to improve performance of its funds under management to the first quartile of the industry. Last year, its equity funds’ performance was close to the industry average. The Thai stock market rose 35 per cent on average, compared with average return of the company’s equity funds of 35-44 per cent,” Chongrak said.
He expects the US economy to grow slowly at 2 per cent this year, while seeing some development in the euro zone’s financial institutions. China’s leadership change is going smoothly, and its gross domestic product is expected to grow more slowly at 7-8 per cent, but with more sustainability.
The Asean Economic Community could boost trade and investment while increasing capital movement and growth, Chongrak said.
“The company expects this year’s earnings of listed companies to grow about 20 per cent. The target for the SET Index is 1,550-1,600 points. Market volatility could remain, but the support level may not be deep. Major positive factors for the stock market include Thailand’s economic expansion and the government’s investment in infrastructure,” Chongrak said.
He also projected that the Bank of Thailand would keep the policy rate unchanged until the end of this year.
