SCBAM takes top spot with 18% share

Business News - Tuesday December 11, 2007

SCBAM takes top spot with 18% share

NAV projected to grow to B300bn

NUNTAWUN POLKUAMDEE

SCB Asset Management, the country's largest asset-management firm, expects its fund portfolio to reach 300 billion baht by the end of the year, according to executive vice-president Kampol Adsavakulchai.

SCBAM, a unit of Siam Commercial Bank, had 290.53 billion baht in assets under management at the end of November, representing a market share of 18.61%. The company had net inflows of over 118 billion baht since the end of 2006.

According to the Association of Investment Management Companies, SCBAM led all fund managers in net asset value, followed by Kasikorn Asset Management with a 14.11% market share and MFC Asset Management with 9.12%.

Mr Kampol said SCBAM had recommended fixed-income investors focus on medium- to long-term bonds this year as interest rates declined.

But for 2008, investors should shift to short- to medium-term bonds as interest rates are expected to turn upwards.

SCBAM projects interest rates to rise by a full percentage point in 2008, with a quarter-point increase per quarter.

The company credits its rapid growth to its success in attracting funds from the deposit customers of its parent, Siam Commercial bank, the country's third-largest bank.

SCB Savings Fixed Income, a short-term fixed income fund, had net assets of 141.76 billion baht as of Nov 7, or nearly double from the 74.98 billion in assets at the end of last year.

The company's medium-term fixed income fund, SCBRF, has more than tripled in size this year to 11.56 billion baht in assets.

A foreign investment fund launched this year focusing on Euro commercial paper has also posted strong asset growth, with a net asset value of 61.1 billion.

The firm's long-term equity funds, meanwhile, rose to 11.9 billion baht in November from 7.1 billion at the end of 2006, while its retirement mutual funds have grown to 6.14 billion baht from 4.54 billion last year.

Mr Kampol said SCBAM currently had 200,000 customer accounts, up from 140,000 at the end of last year, thanks largely to successful cross-marketing activity within SCB's 800-plus branch network nationwide.

By : Bangkok Post