SCB Asset Management (SCBAM) wants to grow its assets under management (AUM) by 10-15% to 2 trillion baht this year, maintaining its position as the top asset manager in Thailand's mutual fund industry.
Chief executive Narongsak Plodmechai said SCBAM expects its AUM to reach 3 trillion baht by 2027, with annual revenue hitting 10 billion baht, up from 6 billion last year.
Despite the Thai stock market slump in the first quarter of 2025, the mutual fund industry posted growth, driven primarily by the bond market, said Mr Narongsak.
SCBAM's major assets amount to 1 trillion baht, with half of them classified as safe-haven investments. This portfolio reflects concerns over a potential US recession and global trade tensions from US tariffs, he said.
The firm is also expanding its investments in private assets, such as private equity and private credits.
SCBAM manages 300 billion baht in foreign assets and 300 billion in real estate investment trusts and infrastructure funds. Both asset classes have shown consistent growth over the past three years.
Bond investments remain the largest segment, as fixed-income assets continue to attract investors during global uncertainty.
"This highly volatile environment is proving challenging for monetary policy. However, as long as US interest rates remain at 4% and Thai rates at 2%, the bond market will continue to be an attractive investment," said Mr Narongsak.
SCBAM anticipates the Bank of Thailand will cut interest rates twice this year.
To remain among the top three asset managers in Thailand, annual AUM growth needs to total 80-100 billion baht, he said. SCBAM plans to expand its customer base from 700,000 to 1 million within three years.
With AUM of 1.94 trillion baht, SCBAM has a 20% market share. Of the total, 1.07 trillion baht is in mutual funds (an 18% market share), 648 billion in private funds (a 29% market share), and 213 billion in provident funds (a 14% market share).
As of Dec 31, 2024, SCBAM had 90 funds rated four or five stars by Morningstar, the highest number in the industry.
