Having added three new types of funds to its portfolio this year, SCB Asset Management (SCBAM) is rapidly closing the gap with Kasikorn Asset Management and ready to surge ahead to become the Kingdom's largest mutual-fund player.

Data from the Association of Investment Management Companies show that assets managed by SCBAM, a unit of Siam Commercial Bank, have grown 40.51 per cent in almost a year, from Bt113.82 billion at the end of last year to Bt159.93 billion early this month.

Kasikorn Asset Management, meanwhile, remains the country's biggest player with a marginal lead. It now manages Bt169.44 billion worth of assets, up from Bt133.4 billion at the end of last year.

Both firms launched a series of short-term fixed-income funds this year, but SCBAM enjoyed great success with three new types of funds, the first of their kind in Thailand: a foreign-investment, structure-note-linked and property fund.

SCBAM's impressive growth was mainly due to strong support by Siam Commercial Bank's 800-plus branches nationwide.

After its overwhelming success launching the Quality Houses Property Fund, SCBAM plans to raise another Bt20 billion next year from the property-fund business.

SCBAM president Adisorn Sermchaiwong said the firm would either increase the capital size of the existing Quality Houses Property Fund or launch new property funds. The company is currently eyeing hotels for investment. The Bangkok International Trade and Exhibition Centre on Bang Na-Trat Road is another asset in which the firm has expressed interest.

"If the next underlying asset is another Quality Houses property, we think it should be taken into an account of the existing Quality Houses Property Fund," said Adisorn. "But we're not only interested in Quality Houses' assets. We can launch new property funds. If there are other interesting office buildings, serviced apartments or hotels, we'll go for it. Whatever it will be, there'll be about another Bt20 billion raised through this type of fund next year."

"Fixed-income funds will remain the main products preferred by our customers. However, we'll add a greater variety of products as alternatives. We'll expand our customer base in private and provident funds, as well," said Adisorn.

The firm also plans to penetrate into a higher customer base through provident and private funds, for which Adisorn expects 20-per-cent growth next year.

As of October, SCBAM was the fourth-biggest player in provident funds, with Bt44.14 billion worth of assets under management, up from Bt34.15 billion at the end of last year.

Its private-fund portfolio ranked 10th, with Bt3.26 billion worth of assets under management.

So far this year, its unit-holder accounts rose from about 100,000 last year to 150,000, with 70 per cent of its customers located in Bangkok.

Piyarat Setthasiriphaiboon

The Nation