K-Asset and J P Morgan unite to boost Thai mutual fund business

A strategic partnership has been forged between Kasikorn Asset Management (K-Asset) and J P Morgan Asset Management (JPMAM) to bolster their mutual fund business in Thailand. This move aligns with the growing wealth segment in the Thai market.

The collaboration was announced yesterday, January 10, by K-Asset, an industry-leading asset management company known for its substantial customer base and assets under management (AUM). This union with JPMAM will leverage both companies’ strengths to develop innovative products and services for Thai investors.

One of the key areas of focus for this partnership is the development of investment innovations that enhance global asset allocation capabilities. K-Asset plans to concentrate on multi-asset investment solutions that offer a risk-based allocation strategy for local investors. This novel investment solution will provide customers with wider opportunities to invest in a variety of global assets in line with their investment objectives and risk appetite.

In response to uncertainties such as the global economic downturn, market volatility, and the ongoing pandemic, which have affected around 60% of Thai investors’ portfolios, K-Asset’s executive chairman, Adisorn Sermchaiwong, emphasised the necessity for appropriate asset allocation and risk diversification.

Our multi-asset fund is a leading global investment solution that we are introducing to Thai investors via our collaboration with JPMAM, said Adisorn. We aim to increase the AUM of the multi-asset fund to 100 billion baht within three years.

K-Asset intends to restructure its existing mixed-asset funds into new multi-asset funds, focusing on wealth customers by investing in sophisticated assets. Currently, the AUM for the company’s mixed-asset funds is around 20 billion baht, constituting 1-2% of the company’s total AUM.

In contrast, JPMAM’s multi-asset funds have an AUM of 580 billion baht, making up 20% of the company’s total AUM. JPMAM’s chief executive for Asia-Pacific, Dan Watkins, acknowledged the high growth potential of the Thai market and expressed enthusiasm regarding the partnership with K-Asset.

We are delighted to establish this strategic partnership with K-Asset to deliver world-class solutions for investors in Thailand. K-Asset has been our long-standing partner in the Thai market, Watkins said.

The collaboration is expected to reap positive results, leveraging JPMAM’s international expertise and experience along with K-Asset’s robust network and customer base. JPMAM also operates in Singapore, Hong Kong, Taiwan, China, South Korea, and India, according to Watkins, reported Bangkok Post.