Investment Philosophy

Investment Philosophy

KAsset Investment Philosophy

In order to achieve a long-term superior and sustainable return for our clients, our investment philosophy is based on the following KA four core principles:

  1. Primacy of Risk Management Brings Superior Return Consistency
    While achieving superior returns is our ultimate goal, it is not with uncompensated risk in order to generate a consistent superior return in the long term.
  2. Existence of Market Inefficiency
    We believe that the markets suffer from behavioral biases which hinder logical decision making and leading to mispriced and undervalued securities. We reckon that these biases can be exploited and therefore create a great source of alpha.
  3. A Combination of Top-Down and Bottom-Up Approaches with Team Specialisation
    Identifying long-term, sustainable sources of alpha requires skill, extensive research and market knowledge. Our top-down approach leads us to optimal asset allocation across markets and asset classes. In addition, we believe specialization yields superior insight of companies and their respective industries. Our large and experienced investment team with dedicated specialists enable us to focus not only on the macro but also on the micro, supporting our bottom-up investment approach based upon proprietary and company-specific research. To implement our approach effectively we incorporate both qualitative and quantitative tools through the investment process.
  4. Subjective Bias Are Reduced Through Disciplined Process
    Long-term investing through market cycles requires a disciplined investment process which reduces biases.

Investment Decision Process

Business Commitment based on the Product Governance Principle

Business Commitment based on the Product Governance Principle (Product Governance)

In recognition of the importance of business commitment based on the Product Governance Principle, KASIKORN ASSET MANAGEMENT CO., LTD., (KAsset) has developed the Product Governance Policy in compliance with the requirements of the Office of the Securities and Exchange Commission (SEC). The Policy serves as guidance for the design and distribution of mutual funds, distributor selection, communications on mutual funds and monitoring of mutual funds and distributors, with consideration of target investors’ requirements and maximum benefits, understanding on mutual funds’ natures and risks, and selection of proper sales channels in order to foster investors’ confidence toward investment in KAsset mutual funds.

Key Contents of the Product Governance Policy

  1. Development of Mutual Funds and Classification of Target Investors
    1. To have in place appropriate processes to develop diverse mutual funds to match investors’ needs
    2. To determine appropriate sales channels, distributors and processes in accordance with the needs and capabilities of target investors
    3. To determine the investor types that match mutual funds for the maximum benefits of investors
  2. Approval Processes for Mutual Fund Products