KBank Private Banking announces its consistent success throughout 2018, securing Thailand’s private banking leadership with more than 11,000 clients and assets under management (AUM) of THB750 billion, up 8 percent.
Ongoing development will be carried on along with world-renowned business ally – Lombard Odier – that has partnered with KBank for four consecutive years.
Through this cooperation, world-class investment services are offered, including capital market and non-capital market advice, and other comprehensive services. For 2019, income growth is targeted at 8 percent.
Mr. Jirawat Supornpaibul, Private Banking Group Head of KASIKORNBANK (KBank), said “Business operations of KBank Private Banking have continued to grow, although the investment market has been more challenging than last year.
Growth is confirmed by the rise in the number of customers to a total of 11,000 and assets under management that have amounted to THB750 billion, up 8 percent and 0.2 percent over 2018, respectively.
Throughout 2018, KBank Private Banking has developed its products and services in all aspects, as follows:
Diverse investment products: The new funds are those that focus on regional investment, risk diversification and systemic volatility management in order to enhance investors’ confidence.
These funds include K-EUSMALL that invests in mid- and small-cap stocks of Europe (excluding the UK) and K-CCTV that invests in A-shares of China, with emphasis on stocks of high growth potential.
Both funds are equipped with risk management strategies to prevent from volatilities. In addition, new products have been designed on a concept of principal protection to ease investors’ concern on unpredictable market conditions.
Family wealth planning service: The service, including provision of useful knowledge and advice, has been extended from customers in Bangkok to 17 important provinces across Thailand.
Advice has been given to around 550 customers on family asset management, with respect to preparation of family charter, planning of efficient asset holding structure, tax planning and asset succession planning.
Advisory service on non-capital market investment, e.g.:
- Private Equity: Preferred Share – Under this project, KBank introduces investors to property developers with high potential, so that the customers have more investment options. Up to the present, the project has assisted in fund raising of more than THB560 million.
- Land Loan for Investment: KBank provides advice to customers on the use of land under their ownership, which is deemed as non-liquid assets. Such land can be used as collateral to enhance liquidity for further investment. As a result, customers have brought their land of more than THB6 billion into the project to obtain total credit limit of more than THB3 billion.
- Life insurance products exclusively designed for Private Banking clients: For example, product linked with investment tools to create greater returns to customers and health insurance product developed on insights of actual customers’ needs.
Private Banking service for Chinese customers and Chinese-speaking customers residing in Thailand: This year is the first year of KBank’s launch of this service to serve 10 million Chinese customers in Thailand.
Compared to 2017, the number of customers has grown 164 percent, while AUM and income has increased 47 percent and 56 percent, respectively.
“For 2019, KBank is preparing to advise on products and services that will make our customers feel confident and content amid changes and uncertainties in many areas.
On the investment front, we may recommend products that can cope with the economy entering the late cycle phase while improving our global investment platform to help them reach numerous investment products at home and abroad.
Regarding asset management, we have solutions in place to help our customers brace for new laws, including the land and building tax law, which is scheduled to be enacted in 2020, as well as the trust law.
KBank will also expand the scope of our family asset management advisory service to upcountry. To ensure greater convenience for our customers in using various services, we are planning to improve our digital channel, based on the world-class core banking system adopted by KBank in 2018,” added Mr. Jirawat.
“This year, there have been a series of events with negative repercussions on the market, including the Fed rate hike and the US-China trade war. They add to the market anxiety over deceleration of the world’s economic expansion, led by the US economy which is approaching its late cycle phase (from 2009) after 10 years of growth.
Hence, the returns on every class of assets have generally trended downward. Looking ahead, investors have to take into consideration four major risk factors: 1) Large economies such as the US economy are reaching saturation point and the others are set to follow suit;
2) Concerns over the global economic slowdown will increase the market volatility; 3) A rise in policy rate will heighten the business and consumption costs; and 4) The battle for global dominance between the US and China will not stop at trade war.
Regarding investment recommendations for our customers next year, KBank will categorize our customers into two groups.
First, for those who are sensitive to short-term market sentiment, KBank will recommend them to build liquidity reserves and reduce their investment risks by diversifying risks into various asset classes. KBank will present new products that never existed in the market before due to the continuous favorable market performance.
Next year, investors should get ready for the slowdown of the economic growth and appropriate investment products are long-term international bonds and convertible bonds.
In addition, stock markets in certain regions are still attractive, if only investors use suitable investment strategy rather than following market trends as seen in the past.
New strategic solutions include the use of data, technology and expertise of the fund management team in applying the Long/Short strategy (buying and selling assets concurrently by buying assets that are expected to give better returns than the others during both cyclical upturn and downturn) or creating Managed Volatility investment mechanism.
For the second group of customers who can take short-term market fluctuations, KBank will continue to recommend them to aim for long-term investment such as investing in Global Multi-Asset funds.
Which will be further presented by KBank, funds established to invest in debentures with similar maturity periods and predictable returns, Private Equity funds to invest in high potential companies outside of the stock exchanges around the world.
And investments in consistent with the changing themes according to the long-term global evolution such as AI, Next Gen Tech and SmartCity. Additionally, KBank focuses on Stay Invested market philosophy rather than marketing timing,” concluded Mr. Jirawat.
Aside from the most comprehensive investment and asset management services in Thailand, KBank Private Banking continues to attach importance to passing on our “When Your Wish is More Than Wealth” philosophy.
Under this mantra, we are committed to managing every aspect of life for sustainable security not just for the asset value, but the transfer of wealth from one generation to the next, including wealth building and sharing in other areas via “PERFECT WEALTH” e-Multimedia Publication”, which features the stories of our 15 valued customers.