​KAsset unveils 4D investment strategy in response to volatility in global market and economy in 2019

KAsset has announced its 2019 business plan focusing on development of digital channels via K-My Funds and K-My PVD application, with the aim of acquiring new customers and retaining present ones to reinforce its leadership in Thailand's asset management business. The company aims to increase digital-based users by 26 percent in 2019 while introducing a 4D strategy to customers to surpass the market in any circumstance, amid a volatile global economy.


Mr. Vasin Vanichvoranun, KAsset Executive Chairman, said that the overall global economy, according to KAsset's 2019 investment outlook, is now in a late upward cycle, with a slower growth rate and diverging performance going forward. Therefore, we will see a highly volatile market and lower expected rate of returns. Numerous challenges exist in dwindling liquidity worldwide, timing of the Federal Reserve's rate hikes, and uncertainty surrounding the US-China trade spat.


“The company's targets and strategies will prioritize investment capability enhancement through the introduction of mutual fund products and services in line with volatile market conditions. For effective customer investment, we have formulated the 4D strategy focusing on Diversification in order to effectively spread risks through diversified portfolios; Defensive investment, especially in assets that generate constant income in spite of market volatility; Duration with the aim of holding assets within an appropriate period; and Discipline through constant investment. The 4D strategy will be instrumental in coping with volatile markets and generating satisfactory returns over the long-term," said Mr. Vasin.


Regarding the company's business plan, Mr. Vasin said that KAsset aims to maintain its leadership in the mutual fund business through ongoing development of mutual fund products and service channels. Emphasis will be placed on development of features for K-My Funds and K-My PVD applications for broader service coverage, maintaining the existing customer base with the application of data analytics innovations for portfolio management to suit varied risk appetites for optimum customer satisfaction, while giving personalized advice via the K-My Funds application. Moreover, focus will be on acquiring new customers by offering them greater convenience with investment via digital channels. After the National Digital ID and e-KYC systems are officially launched, the company expects to see a considerable increase in new customers. Through its synergy with KBank and other selling agents, the company's sales network will become more efficient.


Mr. Vasin added that the company has seen its digital-based users rise steadily. As of the end of 2018, the number of digital-based users totaled around 257,000, representing 57 percent of all mutual fund customers, or an increase of 40 percent over-year. Looking into 2019, KAsset aims to boost the number of digital-based users by 26 percent, to around 325,000 by the end of the year.


“KAsset enjoyed excellent performance last year. Of note, the company was approved by the Securities Exchange and Commission, under its '5 Steps toward Investment with Confidence' guidelines, to be the designer of fund investment via K-My Funds application, reinforcing our readiness and leadership in providing advice via digital channels thanks to maintenance of fund product quality. Moreover, 14 funds issued by KAsset were assigned a five-star rating by Morningstar. Meanwhile, the company launched K Guaranteed 5 Years A Fund (KGT5YA), Only guarantee fund of Thailand, which recorded IPO sales of 4,955 million Baht. What's more, KAsset won the honor of Best Asset Management Company in SET Awards 2018," said Mr. Vasin.


In terms of market share, KAsset has maintained the number-one position in mutual fund and provident fund businesses. Private funds under its management grew 22.1 percent, outperforming the other two businesses, while provident fund business posted 16.1 percent growth. As of the end of 2018, the company's assets under management (AUM) totaled 1.32 trillion Baht. Of this, 977 billion Baht was derived from mutual fund business, 201 billion Baht from provident fund, and 143 billion Baht from private fund, for market shares of 19.9 percent, 17.9 percent and 14.3 percent, respectively (data from AIMC as of December 28, 2018).


For the investment and economic outlook in 2019, KAsset expects that the global market will remain highly volatile. Asset diversification holds the key. For stock markets, KAsset continues to put greater weight on investment in Asia and Europe due to relatively low stock prices compared to other regions even in the midst of the overall global economic slowdown. In particular, focus will be on Asia and Thailand, given that both have enjoyed satisfactory growth with healthy fundamentals. For the debt market, Asian bond yields will remain attractive, but close attention should be paid to volatile movements of Asian currencies over the short-term. Domestically, both short- and long-term Thai bond yields are expected to be higher than the yields seen last year. Still, external factors merit close watch.


Investors should have an understanding of the nature of products, conditions, returns and risks before making any investment decision.