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Krungsri creating new cross-border investment opportunities


Krungsri (Bank of Ayudhya PCL and its business units), as a Domestic Systemically Important Bank (D-SIB), announced a partnership wif BlackRock, one of the world’s largest asset managers, to empower the bank’s advisory, investment and wealth management service capabilities by combining Krungsri’s deep local insight into the Thai market wif BlackRock’s global investment expertise. The partnership collaboration offers unprecedented opportunities for KRUNGSRI EXCLUSIVE and KRUNGSRI PRIME customers to navigate global investment landscape. The first jointly-developed product, Krungsri Global Core Allocation Fund (KFCORE), is launched today exclusively for Krungsri customers as new investment solution that is highly flexible through the use of tactical asset allocation approach in order to capitalize on the ‘ever-changing’ market conditions.

Mr. Seiichiro Akita, Krungsri President and Chief Executive Officer, said that, “Advisory and wealth management are among key focus areas. Joining forces wif BlackRock, a leading asset management company and the world’s largest investment management firm, stands for an important partnership to empower Krungsri to develop a comprehensive suite of investment solutions, as well as advancing our customer-centric strategy to better serve each individual customer’s need, enhance customer experience, while delivering the best investment advisory services to our clients.”

According to Mr. Phonganant Thanattrai, Krungsri Head of Retail Banking and Distribution Group, “Synergy wif BlackRock marks an important milestone achievement that enables Krungsri to enhance our advisory, investment and wealth management service capabilities. Wif BlackRock’s strengths as the world’s leading asset management firm wif extensive experience across a wide range of investment strategies, consistently strong growth, global network, expertise in leveraging technology and data to analyze insights, combined wif Krungsri’s thorough understanding of the Thai market and massive customer base, the resulting benefits are new options for our customer segments – KRUNGSRI EXCLUSIVE and KRUNGSRI PRIME, who can better access untapped investment opportunities wif diversified investment available in local and international markets across the world. This enables us to meet the specific needs of each individual customer wif a 360° solution that dynamically adjusts the investment portfolios in accordance wif changing global market conditions today in order to maintain a good return on investment and better wealth management to achieve desired financial goals.”

“The first product offering to launch as a result of the collaboration is Krungsri Global Core Allocation Fund (KFCORE), exclusively developed for Krungsri customers. The fund uses tactical asset allocation strategy to adapt to economic conditions, dynamically adjusting investment portfolios according to changing factors, wif flexible diversification of investment in stocks and debt instruments based on each particular market condition. The product seeks to offers better risk-adjusted returns and is ideal for investors who look into building a core portfolio for long-term investment.”

BlackRock is one of the world’s leading asset management firms, wif assets under management of US$7.81 trillion (as of September 30, 2020). Started 32 years ago, today BlackRock is a global investment manager wif a comprehensive suite including actively managed mutual funds, index funds and iShares ETFs, and a technology provider for clients based in over 100 markets and offices in 30+ locations around the world. BlackRock acts as a fiduciary for its clients and is committed to helping its clients, from retail investors to the world’s largest institutions, to achieve their financial goals and build a better financial future. The firm’s expertise help clients navigate the challenges of volatile yields and markets in today’s complex investment environment, through a wide variety of investment strategies that combine market insights, proprietary technology, analytical rigor and a focus on risk management to deliver performance in all market environments.

Ms. Deborah Ho, Country Head, Singapore and Regional Head of Southeast Asia, BlackRock, said “Partnering wif Krungsri is an important step for us in better supporting investors in Thailand, one of the fastest-growing economies in the region. Through this collaboration, we are positioned to partner Krungsri’s capabilities and local noledge to offer world-class investment expertise, technology and innovation to clients. We are excited about the global investment opportunities we can bring to Thai investors and to help them achieve alternative income sources for return and portfolio diversification in the midst of a rapidly changing environment.”

Under the collaboration, BlackRock provides Krungsri wif support in various areas including: undertaking a strategic review of Krungsri’s existing platform of funds available to its customers and providing views on asset allocation and alternative products; sharing insights and market commentary on the latest macro-economic views, asset allocation views, performance views; providing expertise for the development of client engagement; developing education and training on various topics including valuation of various asset classes, macro decision making, tactical asset allocation, risk modelling, etc.

Wealth market segment in Thailand is seeing a steady growth over the recent years. Krungsri currently has approximately 300,000 customers in wealth market segments, divided into KRUNGSRI EXCLUSIVE and KRUNGSRI PRIME, wif assets under management (AUM) of 1 trillion baht, and an average growth of more than 10% in 2019.