Investment Opportunities in foreign markets with SSF and RMF
Currently, Thai stock market capitalization is approximately 416 Billion US dollars. For comparison, the global stock market capitalization is approximately 51.26 trillion US dollars. Thus, Thai stock market is only accounted for 0.8% of the global stock market. In addition, Thailand highly relies on export and tourism sectors which the country has been highly affected by the COVID-19 crisis. The country is expected to recover at a slower pace than other countries in Asia.
According to IMF, the research shows that Asia is likely to be the world economic leader. It is forecasted that by 2050, the GDP of China and India will be 20% and 15% of the world economy respectively. Meanwhile, the world’s power leader like the United States will only be accounted 12% and the Euro zone will be just 9% of the world’s economy.
The main reason is that most of the countries in Asia Pacific have been continuing to adapt to digital innovation and can grow exponentially with the Mega Trend e.g., e-Commerce, Online Education, Cloud Computing, EV Cars and many more.
The data shows that increasing the proportion of foreign investment, particularly in Asia Pacific region is more attractive for long-term investments. For anyone who is interested in long-term investing in the Asia Pacific region, Principal Asset Management wishes to propose “Principal Asia Pacific Dynamic Income Equity Retirement Mutual Fund” (PRINCIPAL APDIRMF) which focuses on investing across Asia Pacific region in Barbell Portfolio strategy. The fund will invest in stocks and REITs that offer high dividend yields in order to control portfolio risk, together with growth stocks with high growth potential. The fund aims to focus on adjusting the portfolio to suit the situation in a timely manner (Dynamic Management) to manage the return of the fund to be stable and positive from investment.
“Principal Asia Pacific Dynamic Income Equity Retirement Mutual Fund” (PRINCIPAL APDIRMF) has delivered outstanding returns after covid-19 crisis by delivering 30.42% of past 6 months returns which is more than the fund’s benchmark which delivered 29.15% returns. (As of November 30th, 2020) (Benchmark: M1APJ Index (THB) 50% + M1APJ Index adjusted with FX hedging cost 50%)
Tencent
The leading Chinese IT company that offers a very high growth potential. The company owns both WeChat and QQ, the most famous Chinese messenger applications. The company earns revenue from "online games", which is a very large global market. Tencent currently has more than 1 billion service users.
Alibaba Group
The world’s leading conglomerate firm which is specializing in e-commerce, retail, Internet, and technology for both B2B and B2C. Their services are also known as Alibaba, Taobao and Tmall.
Samsung
The world’s leading mobile phones manufacturer and also semiconductors for the world’s electronics market.
LG Chem
The largest Korean chemical company and one of the world's largest lithium-ion battery manufacturers for EV cars.
For more inforamtion https://www.principal.th/en/principal/APDIRMF
For investor who wishes to diversify portfolio globally, Principal Asset Management wishes to propose “Principal Global Opportunity Fund SSF (PRINCIPAL GOPP-SSF)”. The fund focuses on investing in quality stocks worldwide with high growth potential and competitive advantages under the Disruption Change trend, the world’s new mega trend. The fund will consider investing in companies with global competitiveness which offer high growth potential amid changing social and technological trends (Disruptive Innovation). For examples Zoom, Amazon, TAL, Servicenow, and Alphabet.
PRICNIPAL GOPP class Accumulate (class A) has delivered exceptional return at 48.14% since the beginning of the year 2020 to November 30th, 2020 which is higher than the benchmark index which delivered 14.02%.
The PRINCIPAL GOPP-SSF is available for investment from December 1, 2020.
For more inforamtion https://www.principal.th/en/principal/GOPP-A หรือ https://www.principal.th/th/principal/GOPP-SSF
Additionally, investors who are interested in investment in units of property funds and/or real estate investment trust (REITs) and/or infrastructure funds Principal Asset Management wishes to propose “Principal Enhanced Property and Infrastructure Flex Income Fund SSF” (PRINCIPAL iPROPEN-SSF). The fund focuses on real estate investment trust (REITs) in Asia Pacific and Australia also including logistics and data center sectors which can hardly find in Thailand. According to historical performance, Asian REITs have a higher dividend payout compared to other types of fixed incomes.
According to Bloomberg, the data from over the past 15 years shows that REITs are the second highest-yielding assets with average 8.2% per annum. Additionally, REITs can also be invested with data center sector. The more technology the world needs, the higher demand for the Data Center. Historically, the world has only transmitted 100 GB of data per second, but over the next two years it is expected that more than 150,700 GB of data per second will be transmitted. (As of September 30th, 2020)
ข้อมูลเพิ่มเติม https://www.principal.th/en/principal/iPROPEN-SSF
PRINCIPAL APDIRMF, PRINCIPAL iPROPEN-SSF and PRINCIPAL GOPP-SSF are featured funds selected by Principal Asset Management for investment opportunities in Asia Pacific with attractive growth for long term investors. All 3 funds are also entitled to a tax deduction according to the conditions from the Revenue Department Thailand.
For further study https://www.principal.th/en/mutual-fundth
Disclaimer:
Principal APDIRMF
• Investors should understand product characteristics (mutual funds), conditions of return and risk before making an investment decision.
• Master fund has highly concentrated investment in Hong Kong and China. Therefore, investors have to diversify investment of their portfolios.
• Investors should also study information about tax benefits as specified in the investment guide in such mutual funds. If not complying with investment conditions investors will not receive tax benefits and must return tax benefits
• Past performance is not a guarantee of future results.
PRINCIPAL iPROPEN-SSF
• The investors should study and understand the product (fund) feature, return condition and risk factors carefully before making an investment decision.
• Investors should study and understand the information of investing in the Super Saving
Funds (SSF) in the Fund Prospectus / Fund Factsheet and keep them for future reference. If you have questions, please ask the investor contact for clarification and to understand before buying the investment unit.
• Switching and transferring the investment units of class SSF, investor can switch or transfer among the SSF which have the tax privilege only, except have the change of relevant regulations change in the future.
• The investment units of SSF are prohibited to sell, transfer, pledge or lead as collateral.
• The fund mainly focuses on investment units of property fund and/or real estate investment trust (REITs) and/or infrastructure fund that the fund is exposed to the same risk as investing in real estate or infrastructure directly such as the risk of fluctuations in rental rates and lease rates, increase in property taxes, changes in relevant laws or regulations, risk from natural disasters, building depreciation over time and the increase in interest rates, etc., as well as the risk of concentration may cause more volatility than investments distributed in many industries.
• This fund has highly concentrated investment in Asian countries. So, investors have to diversify investment for their portfolios.
• The fund may have foreign exchange risk because the fund has a policy to invest in foreign countries. Investors may lose or receive profit from foreign exchange or receive money lower than the initial investment.
• The fund may invest in derivatives for the benefit of the return (efficient portfolio management) and to hedge the risk associated with currency exchange rates that may arise from investment in foreign countries as appropriate and in different circumstances at the discretion of the fund manager. Taking into account the current market conditions, regulations, and other relevant factors such as the direction of the securities price, interest rate, exchange rate and the cost of preventing risks involved. Therefore, there is more risk than other mutual funds and the fund may have foreign exchange losses or receive a lower return than the initial investment.
• Past performance is not a guarantee of future results.
PRINCIPAL GOPP-SSF
• The investors should study and understand the product (fund) feature, return condition and risk factors carefully before making an investment decision.
• This fund has highly concentrated investment in North America. So, investors have to diversify investment for their portfolios.
• Investors should study and understand the information of investing in the Super Saving
Funds (SSF) in the Fund Prospectus / Fund Factsheet and keep them for future reference. If you have questions, please ask the investor contact for clarification and to understand before buying the investment unit.
• Switching and transferring the investment units of class SSF, investor can switch or transfer among the SSF which have the tax privilege only, except have the change of relevant regulations change in the future.
• The investment units of SSF are prohibited to sell, transfer, pledge or lead as collateral.
• Past performance is not a guarantee of future results.
For more information
Principal Asset Management Co., Ltd
Address: 44 CIMB THAI Bank Building, 16th Floor Langsuan Road, Lumpini Pathumwan, Bangkok 10330 – Thailand
Website: https://www.principal.th/
Phone: +(662) 686 9595
Email: clientservice@principal.th
Investor can find more investment update
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