KBank Private Banking offers investment advice amid global volatility


May 02, 2024

Investors should diversify risks to private assets to cope with volatility in the global investment market this year, investment consultant KBank Private Banking said on Thursday.

The company’s private banking business chief, Triphon Phumiwasana, said that the global investment market remained volatile amidst many uncertainties, including geopolitical shifts and elections in key nations like Russia, India and the US.

“These events may precipitate regulatory changes and geopolitical tensions in regions spanning Europe, the Middle East and Asia, resulting in impact on traditional investment outcome,” he said, adding that the volatility was expected to remain despite optimism surrounding potential market recovery.

He advised investors who have strong financial liquidity to invest 20% in private assets to mitigate volatility and fortify portfolio stability.

This approach not only fosters resilience but also unlocks opportunities to invest in transformative enterprises and poised to drive future mega-trends like Indira IVF, India’s largest provider of fertility services, he said.

KBank Private Banking also unveiled its three strategies for optimising private asset investment portfolio to enhance investment value, offer superior alternatives and address liquidity constraints:

▪︎ Core and satellite portfolio strategy: It represents 60-80% of the portfolio, primarily consisting of semi-liquid private asset funds, offering monthly investment opportunities and quarterly sales options with a lock-in period of 12-18 months. The satellite portion comprising 20-40% of the portfolio will encompass a diverse array of off-market assets like private equity and real estate funds.

▪︎ Tailor-made portfolio management: Investors can flexibly manage their investment proportion to meet their goals. For instance, investors can invest 100% in semi-liquid private asset funds if they need high liquidity.

▪︎ Join forces with leading global partners: Seek collaboration to develop product presentations and deliver world-class services tailored for Thai investors. The company recently collaborated with a prominent off-market asset management firm, EQT, and a leading alternative asset management company, Apollo, for launching two private equities.

“The company has joined forces with global partners to curate a selection of companies with robust growth to offer investment opportunities and enable investors to generate returns across diverse economic conditions,” Triphon added.

Source: The Nation