Krungsri Asset to miss AUM target

Krungsri Asset Management (KSAM) is likely to marginally miss its growth target for assets under management (AUM) this year due to the economic doldrums.

The company’s AUM stands at 302 billion baht, below its 324-billion target for this year, said chairman and acting managing director Alan Kam.

“Even if we miss our target, it is still growth from last year’s AUM of 270 billion,” he said.

In the first quarter, KSAM dealt with the resignations of chief executive Chatrapee Tantixalerm and chief investment officer Prapas Tonpibulsak.

Around 40 billion baht in AUM was expected to be wiped out by the resignations in the worst-case scenario, said Mr Alan.

“But our agents, customers and foreign investors still trust us,” he said.

Uncertainties in local and global economies have been largely blamed for the potential shortfall of the AUM target, said Mr Alan, a problem other mutual fund companies are also dealing with.

In a bid to reach the growth target, the company is offering new mutual funds, with a focus on tax-saving long-term equity funds (LTFs) and retirement mutual funds (RMFs), always popular with individuals during the final three months of the year.

The company plans to bundle foreign investment funds (FIFs) into LTFs and RMFs to offer wider investment opportunities and help investors diversify risk amid the wild swings of the domestic equity market.

KSAM recently recommended investors diversify into Europe and Japan, as both have continued their pump-priming schemes to ward off a slump, which could push up share prices.

“We aim to attract 7 billion baht into LTFs and RMFs this quarter,” he said.

He said the company plans to launch a new FIF fund that might not hedge against foreign exchange risk, and is pending the stock regulator’s approval.

KSAM also wants to offer an umbrella fund that allows unitholders to switch to other funds under the same umbrella for free. The sub-funds of an umbrella fund each invests in a different market or country, while the structure makes it cheaper for unitholders to diversify.