Krungthai Asset Management (KTAM) has announced a target to increase its assets under management (AUM) by 10% in 2024, aiming to reach a total of 1 trillion baht.

This goal would solidify KTAM's ranking as the third-largest asset manager in Thailand.

Chief Executive Chavinda Hanratanakool noted that KTAM’s strategy this year is centered on diversifying investments across equities and fixed income, both domestically and internationally, in order to mitigate the impacts of market volatility.

As of the end of 2024, KTAM reported a total AUM of 951 billion baht, reflecting a year-on-year growth of 16%, which surpassed the industry-wide growth rate of 10%.

Chavinda highlighted ongoing global economic growth, tempered by significant risks, including potential repercussions from United States tariff policies.

Uncertainty surrounding the US Federal Reserve's interest rate decisions and rising public debt in various countries could also influence investment sentiment.

The economic forecast for China remains uncertain following indications of new stimulus measures aimed at boosting consumer spending.

However, interest in artificial intelligence (AI) sectors has reportedly supported a recovery among Chinese technology stocks.

Chavinda described the fiscal policies in the US as a key concern for global trade and economic stability.

In Europe, inflation and interest rate pressures appear to be easing, while the Thai economy is projected to experience growth, with an estimated GDP increase of 2.8% in 2024, and 3% in 2025. Despite this, Chavinda warned that heightened protectionist trade practices could negatively impact Thailand's export and tourism sectors.

KTAM has identified four primary investment themes for 2024. The first focuses on portfolio diversification to diminish long-term volatility.

The second theme emphasizes risk management through strategic asset allocation and investments in safer havens.

The third theme recognizes that political changes may create new investment opportunities across emerging industries, while the final theme is centered on long-term growth strategies, particularly in sectors such as AI and healthcare, which stand to benefit from demographic shifts and technological innovations.

Chavinda noted the current state of the Thai stock market, indicating that some stocks are currently undervalued, creating potential long-term investment opportunities.

Corporate earnings are anticipated to rebound by 20% this year, recovering from a 6% contraction observed in the fourth quarter of 2024.

In the realm of fixed income investments, the Federal Reserve's interest rate cuts late last year were paused early in 2024 as the bank evaluates prevailing economic conditions.

Yet, further rate reductions are expected, rendering global bonds more appealing for investors.

Moreover, the Bank of Thailand is projected to reduce its policy rates by an additional 25 basis points to 1.75% this year, according to KTAM’s forecasts.

Overall, the global economy continues to expand, albeit at a slower pace compared to the previous year, and KTAM advises that investors should pursue a diversified portfolio strategy to effectively navigate ongoing market volatility.