Talis Asset Management targets its assets under management (AUM) reaching 10 billion baht this year through the launch of a new debt securities fund along with expanding its customer base and sales channels.
The new bond fund will provide an alternative for existing customers and diversifies its offerings to new clients as most of the AUM is invested in equities, said Chatrapee Tantixalerm, vice-chairman and chief executive at Talis.
"The new bond fund will help customers generate steady income when the market fluctuates, similar to last year when many asset classes showed disappointing returns, including global equities, as they were pressured by the trade dispute between the US and China," said Mr Chatrapee.
He said target customers are investors who have some investment experience as the company positions itself as a boutique asset management company.
Talis has more than 100 private fund customers contributing some 80% of AUM, and around 800 mutual fund customers making up 20%.
The company plans to reach new customers through sales agents, independent investment planners and the company's electronic service platforms, such as Talis AM Online Channel for internet trading and the Streaming for Fund mobile app, said Mr Chatrapee.
At the end of 2018, total AUM was worth 5.66 billion baht, with equity investment at 90% and the rest associated with bonds and fixed income assets.
Prapas Tonpibulsak, director and chief investment officer, said Thailand's equity market is expected to continue experiencing high fund flow volatility this year, attributed to the Sino-US trade negotiations, China's growth, the movement of oil prices, the Bank of Thailand's interest rate decisions, the upcoming election and baht valuation.
The stock market will receive a boost if an elected party has a majority in parliament and there are no protectionist measures on global trade, said Mr Prapas.
If Thailand's current account surplus is partially responsible for the baht's continuous appreciation, this would shore up fund flows to move into the domestic stock market because the valuation of domestic equities is not expensive at present, he said.
The Stock Exchange of Thailand (SET) index is projected to move within a range of 1,551-1,861 points in 2019, according to Talis Asset Management.
In 2018, the SET index closed at 1,563.88 points, down by 10.82% year-on-year, with foreign net outflows of more than 200 billion baht. This was in contrast to GDP growth estimated at 4.1% by the Finance Ministry's Fiscal Policy Office and aggregate net profit of SET-listed companies anticipated to record 13.3% growth.