Talis upbeat on AUM increase

Talis Asset Management aims to increase assets under management (AUM) to 7 billion baht this year from 5 billion last year with an expected return of 10%.

The company began managing assets in May last year. Its one-year fund performance showed a 20% return, higher than its target of 10%.

“Reaching our target annual return is attractive to investors, and we expect a return of at least 10% by the end of this year,” said chief executive Chatrapee Tantixalern.

Prapas Tonpibulsak, the company’s chief investment officer, said Talis’ AUM last year comprised private funds worth 4 billion baht, mostly invested in highgrowth stocks in the Thai equity market, and mutual funds invested in equities and bonds tallying 1 billion.

Talis will continue to focus on the Thai equity market with an active management style to reach its return goals, said Mr Prapas.

The firm has about 75 high-growth stocks in its universe and has selected 25 stocks for its portfolio.

He said the top sectors with growth potential this year include property, leasing, and consumer products.

Talis projects the SET index will move in a range 1,400-1,700 points this year, meaning the index still has upside potential for the second half.

Mr Prapas said the SET index has volatility of about 300 points on average per year, but this year it has seen volatility of only 70 points. That low volatility is similar to other bourses, so a more volatile market the rest of the year is possible, he said.

Factors that could make the market volatile include geopolitical upheaval, global economic growth, and volatile oil prices, said Mr Prapas.

“We have about 300 clients for mutual funds and 100 clients for private funds,” he said. “The average asset value for private funds is 40 million baht. The minimum amount to open a private fund account is 30 million baht.”

Mr Prapas said Talis will launch a new equity fund by the middle of this year.

Talis expects the Thai economy to grow slightly in the second half because of improving exports, while government and private investment have a positive outlook.