Kasikorn Asset Management (KAsset) plans to increase its assets under management (AUM) by 12% this year to maintain its top position in the mutual fund and provident fund segment through its 4D investment strategy and greater digitalisation.
The company's 4D investment strategy aims to mitigate volatility in the global capital markets and generate long-term returns.
KAsset is also focusing on the development of digital channels via the K-My Funds and K-My PVD applications, eager to acquire new customers and retain existing ones to reinforce its leadership in Thailand's asset management business.
The company aims to increase digital-based users by 26% in 2019.
"The company's target and strategy will prioritise enhancing investment capability through the introduction of mutual fund products and services, in line with volatile market conditions," said executive chairman Vasin Vanichvoranun.
"KAsset formulated the 4D strategy focusing on diversification to effectively spread risks through diversified portfolios."
The three other Ds include 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.
KAsset anticipates highly volatile global markets, making asset diversification key for this year's investment outlook.
For stock markets, KAsset continues to put greater weight on investment in Asia and Europe because of relatively low stock prices compared with other regions, even in the midst of the overall global economic slowdown, he said.
Particular focus will be placed on Asia and Thailand, given that both have enjoyed satisfactory growth with healthy fundamentals, said Mr Vasin.
For the debt market, Asian bond yields are poised to remain attractive, but close attention should be paid to volatile movements of Asian currencies over the short term, he said.
"Domestically, both short- and long-term Thai bond yields are expected to be higher than the yields seen last year. Still, external factors merit a close watch," said Mr Vasin.
This year's investment challenges are identified as dwindling financial liquidity worldwide, timing of the US Federal Reserve's rate hikes, and uncertainty surrounding the Sino-US trade spat, he said.
Regarding the company's business plan, 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 apps for broader service coverage, maintaining the existing customer base with the application of data analytics innovations for portfolio management to suit varied risk appetites, said Mr Vasin.
The K-My Funds app is expected to give personalised advice, he said.
More focus will also be placed on acquiring new customers by offering greater convenience with investment via digital channels.
After the National Digital ID and e-Know Your Customer systems are officially launched, the company expects to see a considerable increase in new customers, he said.
Through its synergy with Kasikornbank and other agents, the company's sales network will become more efficient, said Mr Vasin.
He said the company has seen its digital-based users rise steadily.
As of the end of 2018, the number of digital-based users totalled around 257,000, representing 57% of all mutual fund customers, up 40% year-on-year.
"Looking to 2019, KAsset aims to boost the number of digital-based users by 26%, to around 325,000 by the end of the year," said Mr Vasin.
As of year-end 2018 the company's total AUM was valued at 1.32 trillion baht, of which 977 billion was derived from the mutual fund business, 201 billion from the provident fund segment and 143 billion from KAsset's private fund, according to the Association of Investment Management Companies.
The company had a 19.9% market share for its mutual fund business, while the portions for provident fund and private fund were logged at 17.9% and 14.3%, respectively.
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