UOBAM sees high potential in global security equity

The firm, together with Pictet Asser Management firm from Switzerland, is launching Thailand’s first global security equity fund next week.
“The security theme is another important area of global potential that consumers will be aware of and UOBAM sees the growth potential of businesses in the security |industry in the years to come. |The global economic outlook is currently supportive of invest-ment in global equity,” Natcha Suntorntarawong, the firm’s executive director, explained.
She said the current global lifestyle is more connected via online innovation, which is growing rapidly from urbanisation. This is expected to double by 2050 and will lead to demand for infrastructure and also in terms of security such as stricter examinations of products and services.
“The fund will be invested in security shares around the world with current weight on the United States and the information technology industry of around 40 per cent since the majority of IT shares are in the US and other developed economies,” she told The Nation.
Examples of security businesses that might benefit from the mega-trend are businesses that deal with online security |of e-payment, security system |for public transportation, monitoring and quality assessment equipment etc. The valuation |of security stocks is also currently not that expensive when |compared to other shares globally.
Natcha also explained that the global economic expansion is expected to pick up next year based on the International Monetary Fund’s prediction that the global economy will be able to expand by 3.6 per cent in 2016 compared with 3.1 per cent this year.
Shares in the security theme can be divided into three groups: security equipment such as airbags, CCTV cameras and helmets; security systems such as the ones used on the Internet, e-payment and those involved in safety in telecommunication; the third group involves security businesses such as private security firms and testing and quality control facilities.