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Published on January 16, 2008

The largest fund-management company reported whopping 64-per-cent growth for all its businesses last year, almost double the industry's average of 37 per cent, Patcharin Techakehakit, senior executive vice president, said yesterday.

SCBAM's mutual-fund business continued to drive total growth, swelling by 76.5 per cent or Bt130 billion to about Bt300 million. Riding on the back of new savings legislation and rising interest rates, the SCB Savings Fixed Income Fund has ballooned by Bt62 billion to Bt137 billion, said Kampol Adsavakulchai, executive vice president for mutual funds.

With net asset value (NAV) or book value surpassing Bt357 billion, perched at the top with 17.5 per cent of the overall fund-management business, SCBAM is often seen as all about size and not returns.

But Kampol disagrees. He said that the firm's long-term investment fund LT3 returned 45.43 per cent last year. But with year-to-date adjusted returns ranging from 2-50 per cent, overall its portfolio is something of a mixed bag.

As global interest rates rise steadily along with inflation, SCBAM will issue eight foreign fixed-income investment funds every month, chief investment officer Chukiat Titihirunjaroen said.

"We might throw in an equity fund next quarter, with the focus still on Asian emerging markets," Kampol said.

With the Thai economy forecast to grow 4.5-5 per cent and listed companies 15-20 per cent this year, buoyed by consumer confidence and government projects, the fund has set its NAV goal at Bt420 billion for the year.

SCBAM will also try to improve its provident and private fund businesses, which make up only a fraction of its total business.

Patcharin said the focus for provident funds would be to increase the number of companies rather than volume. It last year netted contracts from the likes of PTT Exploration and Production and Thailand Tobacco Monopoly.

In private funds the company will also continue to boost its clientele, wooing institutional players such as foundations, cooperatives and university trusts.

"[With such a target], it's not going to be easy," said Adisorn Sermchaiwong, former SCBAM chief and now executive vice president overlooking all of SCB Group's saving and investment products.

But with Siam Commercial Bank's large customer base and marketing prowess, growth is knocking on the door.

Ki Nan Tsui

The Nation