KASIKORN ASSET MANAGEMENT PLC. (KAsset) organized the “KAsset Investment Forum 2018: Strategy for all Seasons" seminar joined by four world-class asset management companies. The event offered in-depth information on investment overviews and strategies for 2018. Amid expected volatility in world markets, KAsset is poised to present a variety of funds for customers' investment portfolios, focusing on effective allocation of multiple assets to generate returns that beat all market conditions.
Mr. Vasin Vanichvoranun, Executive Chairman of KAsset, said the world economy in 2018 should tend to grow well in continuation from last year. In each region, growth trends will be more consistent, which should serve as a positive factor for the performance of listed companies. Therefore, equity investment remains more interesting than bond investment. However, because share prices had continually risen during 2017, markets may not be as bullish as seen last year, and increased volatility could be expected in the overall investment picture.
“Overall, share prices have become dearer and global bond yields are rising amid expectation of earlier-than-expected Fed rate hikes given accelerating inflation. As a result, assets may face heavy selling around the globe, thus leading to higher market volatility. Nonetheless, global economic fundamentals remain healthy. Corrections in various markets may therefore provide good opportunities for long-term investment. KAsset has worked with its partners, which are leading asset management companies including BlackRock, J.P. Morgan, Fidelity and Lombard Odier, to offer investment perspectives and strategies while also recommending appropriate mutual fund products that offer satisfactory returns regardless of market circumstances. Proper asset allocation is instrumental in mitigating overall risk. Along with this, portfolio adjustment should be based on the prevailing situation," Mr. Vasin added.
He also said that the company's portfolio management primarily takes into account demand of two main customer groups, i.e., those investing via our relationship managers who provide them with private wealth advisory and need-based recommendations, and retail investors. KAsset's top-four picks are K-GINCOME, which focuses on equities and debt instruments worldwide offering high returns in terms of both interest and dividend; K-SGM, which mainly diversifies investment in global assets with a risk-based allocation strategy; K-CHINA, focusing on China's A-shares and H-shares of Hong Kong; and K-ART, which employs a market-neutral strategy by investing in synthetic long/synthetic short derivatives to minimize risk in the stock markets in which the Fund invests. These four funds which KAsset has selected for our customers' portfolios mainly invest in foreign master funds under management of the aforementioned asset management companies which are KAsset's partners.
With regards to their operating performance as of December 29, 2017, K-GINCOME-A (R) offered a return of 7.84 percent, K-SGM of 9.79 percent and K-CHINA of 37.09 percent. Moreover, these funds have received five-star ratings from Morningstar ((Morningstar® Overall Rating of Thailand OE China Equity, January 31, 2018). Meanwhile K-ART, which was established on October 6, 2017, offered a past-three month return of -1.11 percent (as of January 31, 2018).
The second customer group will be recommended an investment portfolio for general retail customers, focusing on various funds in K-FIT, a mixed fund with a policy of investing in investment units of domestic and overseas funds (Fund of Funds), including debt instruments and/or alternative funds. Investments in K-FITS, K-FITM, K-FITL and K-FITXL under the management of KAsset are varied in risk level and anticipated return target, based on standard criteria, at 3.0 percent p.a., 5.5 percent p.a., 7.5 percent p.a., and 10 percent p.a., respectively.
The highlight of K-FIT is its strategy to diversify its investment portfolio across various asset classes, with fund managers selecting appropriate assets and adjusting portfolios in line with market conditions. K-FIT is thus appropriate for investors who don't have time to closely monitor the markets. Investors can also easily invest via the K-My Funds application, which is designed to be their personal mutual fund advisor. From their inception on October 4, 2017, K-FITS, K-FITM, K-FITL, and K-FITXL gained three-month returns of 1.33, 2.90, 3.89 and 5.79 percent, respectively, beating the respective benchmark rates of 0.75, 1.40, 1.91 and 2.55 percent (as of January 31, 2018).
Mr. Vasin added that KAsset believes this investment strategy should produce positive and consistent returns in all market conditions because the selected funds have passed analytical processes in terms of quality and quantity, as well as systemic performance monitoring and evaluation. In particular, KAsset provides prudent risk management to ensure that investors can invest in the funds with full confidence.
Investors should study the products, conditions of returns and risks of funds at www.kasikornasset.com or KAsset or request information from their sales agents before making a decision to invest. The ratios of forex hedges for K-GINCOME, K-CHINA and K-ART are over 75 percent of their overseas investment values. Forex hedging for K-SGM is at the fund manager's discretion. Since the funds are not fully hedged against foreign exchange rate risks, investors may lose or gain from foreign exchange fluctuations or receive investment returns less than their original investments.