​KAsset recommends that investors capitalize on global trends post-COVID-19 Highlighting multi-asset themed portfolio for risk diversification to cope with market volatility

​Mr. Vasin Vanichvoranun, Executive Chairman of KASIKORN ASSET MANAGEMENT Co., Ltd. (KAsset), noted that the Thai economy has gradually emerged from the COVID-19 crisis. However, both money and capital markets are expected to remain volatile over the short term. Given that investors remain anxious about the situation, most of them have opted to hold fixed-income funds that offer limited returns. However, Thailand is expected to manufacture a COVID-19 vaccine by 2022. Investors are therefore recommended to pursue a multi-asset strategy in their investment via mutual funds recommended by KAsset so as to maximize their long-term returns, especially after the COVID-19 crisis dissipates.  

Mr. Vasin added that a strategy for efficient investment portfolio design should ensure that investments are distributed among both high- and low-risk assets in order to create attractive returns in any market conditions and reduce volatility. Investors can divide their investment portfolio into two parts: the “Core” portion, which should account for more than 50 percent of the portfolio, and the remaining “Satellite” portion. KAsset advises our customers to add the K Global Income Fund (K-GINCOME) to their core portfolio. K-GINCOME has a policy of diversifying investments in more than 2,500 asset classes worldwide via a flexible management strategy, while its investment portfolio can be adjusted in accordance with market changes. For the satellite portfolio, KAsset advises our customers to add the K China Controlled Volatility Fund (K-CCTV), which focuses on A-Shares, with a promising growth outlook in the Chinese bourses. K-CCTV can create substantial yields, which have regularly been ranked in the Top Quartile since the fund was established. Two other funds should also be added: one is the K Positive Change Equity Fund (K-CHANGE), which focuses on growth stocks of global companies and stocks of companies that are creating positive and sustainable change for the society and environment. K-CHANGE’s operating performance over the past year is at 52.60 percent p.a., bettering the MSCI All Country World Index (ACWI) at 2.88 percent (as of July 31, 2020). In addition, the K Fixed Income Proactive Fund (K-FIXEDPRO) focuses on investment-grade debt instruments at home and abroad, especially in Asia, with the aim of generating returns than are greater than those of general equity funds.       

Mr. Vasin continued, “Regarding the outlook for economies abroad, stock markets reflect the positive outlook towards the progress being made in the development of a COVID-19 vaccine, as also gauged from improving economic indices. However, many countries are still struggling to keep the pandemic under control. As a result, economies are recovering at a much slower pace than initially projected. Regarding Thailand, the Thai bond market has maintained its liquidity and stability, with the Bank of Thailand (BOT) keeping the policy rate at 0.50 percent for the time being. Meanwhile, the Thai stock market continues to experience short-term volatility. KAsset projects that the SET Index will settle at 1,350 points, with the potential of reaching 1,400 points if the COVID-19 crisis is resolved. Investors need to monitor the ongoing conflict between the United States and China, as that may periodically affect the investment climate.” 

Mr. Vasin added that KAsset presently holds assets under management (AUM) valued at THB 1.36 trillion, which can be divided into THB 1 trillion in mutual fund business, THB 188 billion in provident fund business and THB 168 billion in private fund business, or a market share per business category of 21.4 percent, 15.5 percent and 15.3 percent, respectively. KAsset still tops the market as No. 1 in the mutual fund industry (based on data from AIMC on July 31, 2020).

Investors should have a thorough understanding of the product, conditions of returns and risk before deciding to invest.