GSB partners with AMCs to expand access to funds
Government Savings Bank (GSB) has partnered with 10 asset management companies (AMCs) to expand savings and investment options for its 26 million customers, allowing them to invest according to their individual risk appetites.
Speaking at the launch of the “GSB The Selected” programme, Songpol Chevapanyaroj, president and chief executive of GSB, said the bank had selected 10 AMCs with expertise across various asset classes to help customers achieve returns that match their risk tolerance.
The investment portfolios are divided into three categories: conservative portfolios focused on stability and regular income; high-risk portfolios aimed at generating higher returns under the “high risk, high return” principle; and balanced portfolios.
Mr Songpol, a former executive of the Government Pension Fund (GPF), said GSB, as the country’s savings promotion bank, views saving as more than simply depositing money in a bank account to earn interest or purchasing savings lottery products. He said investment is also an important form of saving.
Over the past decade, he noted that investing has become increasingly challenging and volatile, particularly following the Covid-19 pandemic, the Russia-Ukraine war, and the ongoing conflicts involving the United States, Israel and Iran. It also remains unclear when these geopolitical tensions will come to an end, he said.
“We should not put all our eggs in one basket. Asset allocation is important to help generate returns that at least exceed inflation,” Mr Songpol said, adding that the AMCs selected by GSB possess specialised expertise in their respective investment areas.
Each selected AMC will offer a distinct investment portfolio strategy. For example, MFC Asset Management provides a conservative, income-generating portfolio focused on low-risk investments.
The portfolio emphasises high-quality fixed-income securities to preserve purchasing power against inflation, while allocating a portion to stable large-cap equities and income-generating real estate investments, such as data centres and senior living complexes.
Krung Thai Asset Management offers a portfolio tailored for investors seeking more aggressive investment opportunities and able to tolerate higher levels of risk under the “high risk, high return” principle. The strategy focuses on investments in AI-related stocks.
Although some investors believe valuations in the AI sector have already risen substantially, the AI investment theme extends beyond semiconductor chips to encompass the broader ecosystem, including areas such as power grids and battery technologies, he said.
Meanwhile, One Asset Management focuses on constructing balanced portfolios through diversification across a range of asset classes. The strategy aims to spread risk by allocating investments among different assets, including 20% in global growth equities, 70% in fixed-income securities, and the remainder in real estate funds.
Source – Bangkok News
