MONTHLY MARKET UPDATE
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JUNE 2020
Data as of 30/06/2020
The peak of the pandemic is now visible in more countries, and a gradual easing in the lockdown measures has started. However, in the US and South America, the outbreak seems still quite active. Overall, we continue to expect a significant plunge in the GDP growth globally for the first half of the year, before a stabilization at the end of the year. At country level, we will see different timelines depending on the outbreak developments and pre-existent fragilities. Over the past month, in addition to the reopening of economies, we have witnessed the strong fiscal support in the US and important policy actions in Europe, where we believe that the EU Recovery Fund and national fiscal interventions could prove to be a short-term game changer. However, there are no signs of improvement on the sustainability of corporate earnings. Overall, it is time to look forward, but the environment remains complex, with uncertainty still looming, and equity markets seem quite complacent ahead of second wave risks, trade and US – China tensions. Consequently, we maintain our cautious stance, but we are a bit more constructive and we will look for entry points, especially in Europe. From a tactical standpoint, although we are comfortable with quality growth stocks in the current environment, some rotation opportunities could arise in the value and cyclicals sectors. On DM equities, we keep a conservative view and we remain vigilant on hard data, while we remain neutral on EM. On the fixed income side, looking forward we believe central banks will aim to keep the cost of public debt low to support governments’ fiscal needs, leading range-bound movement in for yields. Within fixed income pocket, we prefer to be underweight on Thai bonds and overweight on global bonds. Among global fixed income, we have a rather neutral view on duration, with a preference in US bonds. We stay positive on credit, under the umbrella of Central banks in the US and in the Euro area, with a preference for IG. IG valuations look more consistent with fundamentals and CB action than HY (which could suffer due to higher default rates and slowing top-line growth). Finally, liquidity assessment remains crucial, and low spreads/low defaut rate are calling for high selectivity. Finally, we are constructive on EM debt with a preference on Asian bonds.
MARKET VIEWMARKET OVERVIEWDespite being a choppy month with some harsh trading days, June saw another strong performance for risk assets, ending a quarter that has seen almost all assets with a positive return. Much of these gains have come thanks to a less active outbreak in numerous regions, and the moves to reopen major economies, as well as remarkable levels of stimulus from governments and central banks across the world. In this context, global equities continued their rebound, MSCI World gaining 2.69%, supported by the rebound of European equities (Euro Stoxx 50 +6.48%). After a disappointing performance in May, MSCI EM rebounded significantly, gaining 7.35% in USD terms over the month thanks to the strong rebound of its biggest component China (+9.04%). In Thailand, SET Index (-0.26%) was only stable over the month. On fixed income markets, despite some volatility at the beginning of the month (rates went suddenly up, +30bp for 10y US Treasuries), major global rates finally ended almost unchanged in June. On credit markets, spreads continued to tighten in most major markets. Global Aggregate Index Hedged USD benefitted from this trend, and ended the month with a slightly positive return of +0.50%. On local fixed income, our Thai bond composite index was slightly up (+0.23%). Finally, on commodity markets, oil prices continued to recover in June and ended the month with a 10.65% increase (WTI), while Gold also continued to perform strongly with a +2.93% monthly return.
TABLE OF CONTENT
RISK AVERSE PORTFOLIO
CONSERVATIVE PORTFOLIO
BALANCED PORTFOLIO
ADVANCED PORTFOLIO
AGGRESSIVE PORTFOLIO
01
03
05
07
09
PLEASE SELECT THE ITEMS, FOR FURTHER INFORMATION
MARKET OVERVIEW AND MARKET VIEW (Data as of 30 June 2020)
PORTFOLIO OVERVIEW – JUNE 2020
01
Table of content
This summary is a part of the prospectus which only sets out information relating to the policy, return, risks and conditions of the fund. Investors must study the information in details from the full prospectus before making an investment decision. Full prospectus can be requested from a selling agent and the Management Company. Investors may also study information from the prospectus that was submitted by the Management Company to The Securities and Exchange Commission (SEC) on SEC’s website. If you have any questions, please ask your investment advisor before buying investment units. Investors should make investment only when they see that the fund is suitable to their objectives and that they can accept potential risks from such investment.
For customer’srisk level 1RISK AVERSE PORTFOLIO
Monthly Performances and Risks statistics
The portfolio underperformed its benchmark, delivering +0.18% vs +0.29%. This month, the overweight global bond and United Global Dynamic bond contributed the most to the performance. On the opposite side, Thai Fixed income funds were key detractors.
Maximum drawdownWorst monthLowest returnBest monthHighest return
PortfolioBenchmarkSpread
3 months0.78%1.00%
-0.22%
1 month0.18%0.29%
-0.10%
6 months-0.96%1.88%
-2.83%
Portfolio volatilityBenchmark volatility
3 years1.28%0.90%
1 year2.13%1.41%
5 years--
YTD-0.96%1.88%
-2.83%
S.I.(% p.a.)1.71%2.61%
-0.90%
On fixed income markets, we are constructive on Thai fixed income, but we have now a preference for global fixed income which offers some portfolio protection thanks to global core government bonds and at the same time should bring additional return with a reasonable risk thanks to broad credit space diversification. Considering this, we decided to reinforce global bonds allocation (via TMB Global Bond, TMB Global income and United Global Dynamic Bond). Within Thai fixed income allocation, given the expected easing of financial conditions, we prefer to sell Money Market Funds (TMB Treasury and K Cash Management) to reinvest on Aggregate funds (Krung Thai Short Term Fixed income plus, K fixed income and Krungsri Active income fund) which should benefit from credit spreads tightening looking forward.
PortfolioBenchmarkSpread
20173.01%2.25%0.76%
20180.68%1.28%
-0.61%
20193.31%3.72%
-0.41%
2016---
2015---
Portfolio commentary
Performance analytics
Risk analysis (rolling)
Strategy
Performance Evolution (Base 100)*
Calendar year performance
Past performance (%)
Asset Allocation*
FIF Fixed Income
Fixed Income
28.02%
% Investment Portion
71.98%
% weight28.02%11.05%
7.94%9.02%
71.98%10.00%17.98%17.00%17.00%
9.99%
Bloomberg
TMBGLBF TB TMBGLIN TBUNGLDBN TB
KASKTPF TBKFIXINC TBKFAFIXI TBKTSFIPA TBTMBTRMF TB
ISIN
TH2560010005 TH7232010002TH8385010005
TH2733010007TH1145010001TH7481010000TH7323010002TH1092010004
TMB GLOBAL BOND FUNDTMB GLOBAL INCOME FUNDUNITED GLOBAL DYNAMIC BOND-N
K CASH MANAGEMENTK FIXED INCOME FUNDKRUNGSRI ACTIVE FIXED INCOME AKTAM FIXED INCOME PLUS ATMB TREASURY MONEY
FIF Fixed Income
Fixed Income
Portfolio composition – June 2020
Monthly Market Update – June 2020
* This portfolio allocation will evolve depending on the market condition or other economic factors.
Portfolio Benchmark
28.02%
71.98%
-3.15%Mar-20-2.52%Mar-190.47%
Reference allocation: 100% Fixed IncomeThis profile is designed for investors having a low risk tolerance
Benchmark :Composite Index **
Sub-fund launch date: 30/12/2016
Investment Objective
** Index composition :
48% THAI BOND DEALING CENTER GOVT BOND GRP 1 TOTAL RETURN INDEX + 8% THAI BOND DEALING CENTER CORPORATE BOND GRP 1 TOTAL RETURN INDEX (BBB UP) + 24% THAI BOND DEALING CENTER SHORT TERM GOVT BOND TOTAL RETURN INDEX + 20% BLOOMBERG BARCLAYS GLOBAL AGGREGATE HEDGED
Portfolio Management Fee :
Portfolio Management Fee (Exclude vat) Not Exceeding 1.5% P.A. of AUM (Actual Fee No Charge)
As of 30 June 2020
Inception to date
** The summation of portfolio return and the spread may not equal to the benchmark return because of the rounding effect
02
03
Table of content
This summary is a part of the prospectus which only sets out information relating to the policy, return, risks and conditions of the fund. Investors must study the information in details from the full prospectus before making an investment decision. Full prospectus can be requested from a selling agent and the Management Company. Investors may also study information from the prospectus that was submitted by the Management Company to The Securities and Exchange Commission (SEC) on SEC’s website. If you have any questions, please ask your investment advisor before buying investment units. Investors should make investment only when they see that the fund is suitable to their objectives and that they can accept potential risks from such investment.
For customer’srisk level 2CONSERVATIVE PORTFOLIO
Monthly Performances and Risks statistics
TMB CHINA OPPORTUNITY FUND TMB EASTSPRING ASIA ACTIVE EQUITYTMB EASTSPRING GLOBAL CORE EQTMB GLOBAL QUALITY GROWTH FUND
TMB ASIAN BOND FUNDTMB GLOBAL BOND FUNDTMB GLOBAL INCOME FUNDUNITED GLOBAL DYNAMIC BOND-N
K STAR EQUITY FUND-A ACCTHANACHART LOW BETA
K CASH MANAGEMENTK FIXED INCOME FUNDKRUNGSRI ACTIVE FIXED INCOME AKTAM FIXED INCOME PLUS A
Asset Allocation*
FIF EquitiesFIF Fixed Income
10.09%
% Investment Portion
38.62%EquitiesFixed Income
6.23%45.07%
FIF Equities
FIF Fixed Income
Equities
Fixed Income
% weight10.09%
2.56%2.55%2.46%2.52%
38.62%4.02%
16.11%9.95%8.54%6.23%2.87%3.35%
45.07%10.01%12.01%12.02%11.02%
Bloomberg
TMBCOPF TBTMBAGLF TBTMBESGC TBTMBGQGT TB
TMBASD2 TBTMBGLBF TBTMBGLIN TBUNGLDBN TB
KSTAACC TBTISCOHD TB
KASKTPF TBKFIXINC TBKFAFIXI TBKTSFIPA TB
ISIN
TH5969010005TH5820010004TH9296010001TH6351010009
TH7628010004 TH2560010005TH7232010002TH8385010005
TH1557010002TH3221010004
TH2733010007TH1145010001TH7481010000TH7323010002
Portfolio composition – June 2020
45.07% 38.62%
10.09%
6.23%
Monthly Market Update – June 2020
* This portfolio allocation will evolve depending on the market condition or other economic factors.
The portfolio outperformed its benchmark delivering +1.44% vs +0.49%. This month the underweight in Thai equities, the overweight in Global Bonds and the allocation to Global EM Bonds (TMB Emerging bond) contributed the most to the performance. On the fund level, Tisco High Dividend was a key contributor, benefitting from the value rally at the beginning of June.
Maximum drawdownWorst monthLowest returnBest monthHighest return
PortfolioBenchmarkSpread
3 months5.22%4.17%1.05%
1 month1.44%0.49%0.94%
6 months-2.11%0.52%
-2.63%
Portfolio volatilityBenchmark volatility
3 years4.21%3.41%
1 year6.66%5.30%
5 years--
YTD-2.11%0.52%
-2.63%
S.I.(% p.a.)2.45%2.95%
-0.50%
Portfolio commentary
Performance analytics
Risk analysis (rolling)
Strategy
Performance Evolution (Base 100)*
Calendar year performance
Past performance (%)
Portfolio Benchmark-9.95%Mar-20-5.51%Apr-202.56%
Reference allocation: 80%Fixed Income, 20% Equities This profile is designed fo cautious investors having a low to medium risk tolerance and looking for a large diversification in terms of asset classes.
Benchmark :Composite Index **
Sub-fund launch date: 30/12/2016
Investment Objective
** Index composition :
30% THAI BOND DEALING CENTER GOVT BOND GRP 1 TOTAL RETURN INDEX +5% MSCI AC ASIA EX JAPAN+ 10% BANGKOK SET+15% THAI BOND DEALING CENTER SHORT TERM GOVT BOND TOTAL RETURN INDEX +5% MSCI WORLD +5% THAI BOND DEALING CENTER CORPORATE BOND GRP 1 TOTAL RETURN INDEX (BBB UP) +30% BLOOMBERG BARCLAYS GLOBAL AGGREGATE HEDGED
Portfolio Management Fee : Portfolio Management Fee (Exclude vat) Not Exceeding 1.5% P.A. of AUM (Actual Fee 0.5% P.A. of AUM)
PortfolioBenchmarkSpread
20176.94%5.51%1.43%
2018 -2.05%-0.99%-1.06%
20196.15%5.42%0.72%
2016---
2015---
Inception to date
In the current context where we consider that equity markets are probably too optimistic, we
remain cautious and we decided to reduce further equity exposure after the recent rally by
selling Tisco High Div. Within Thai equities, we also decided to have a more defensive exposure
with the introduction of Thanachart Low Beta fund. In Asia, we decided to sell ASEAN fund and
replace it by TMB Eastspring Asia Active Equity in order to have a greater focus on North Asian
countries that should be the first-out of the pandemic. On fixed income markets, we are
constructive on Thai fixed income, but we have now a preference for global fixed income which
offers some portfolio protection thanks to global core government bonds and at the same time
should bring additional return with a reasonable risk thanks to broad credit space diversification.
Considering this, we decided to reinforce global bonds allocation (via TMB Global Bond, TMB
Global income and United Global Dynamic Bond). Within Thai fixed income allocation, given the
expected easing of financial conditions, we prefer to sell Money Market Funds (TMB Treasury
and K Cash Management) to reinvest on Aggregate funds (Krung Thai Short Term Fixed income
plus, K fixed income and Krungsri Active income fund) which should benefit from credit spreads
tightening looking forward.
** The summation of portfolio return and the spread may not equal to the benchmark return because of the rounding effect
As of 30 June 2020
04
05
For customer’srisk level 3BALANCED PORTFOLIO
Monthly Performances and Risks statistics
Table of content
This summary is a part of the prospectus which only sets out information relating to the policy, return, risks and conditions of the fund. Investors must study the information in details from the full prospectus before making an investment decision. Full prospectus can be requested from a selling agent and the Management Company. Investors may also study information from the prospectus that was submitted by the Management Company to The Securities and Exchange Commission (SEC) on SEC’s website. If you have any questions, please ask your investment advisor before buying investment units. Investors should make investment only when they see that the fund is suitable to their objectives and that they can accept potential risks from such investment.
TMB CHINA OPPORTUNITY FUND TMB EASTSPRING ASIA ACTIVE EQUITYTMB EASTSPRING GLOBAL CORE EQTMB GLOBAL QUALITY GROWTH FUND
TMB ASIAN BOND FUNDTMB GLOBAL BOND FUNDTMB GLOBAL INCOME FUNDUNITED GLOBAL DYNAMIC BOND-N
K STAR EQUITY FUND-A ACCTHANACHART LOW BETATISCO STRATEGIC INCOME
K CASH MANAGEMENTK FIXED INCOME FUNDKRUNGSRI ACTIVE FIXED INCOME AKTAM FIXED INCOME PLUS A
TMB GOLD SINGAPORE FUND
PortfolioBenchmarkSpread
3 months10.43%
9.01%1.42%
1 month2.29%0.59%1.70%
6 months-4.53%-2.82%-1.71%
YTD-4.53%-2.82%-1.71%
S.I.(% p.a.)2.56%2.57%
-0.01%
Performance Evolution (Base 100)*
Calendar year performance
Past performance (%)
Portfolio Benchmark
% weight18.34%
6.17%4.10%1.98%6.08%
29.25%4.04%
11.14%8.01%6.06%
24.10%14.45%
6.75%2.91%
25.18%5.04%7.55%7.56%5.04%3.13%3.13%
Bloomberg
TMBCOPF TBTMBAGLF TBTMBESGC TBTMBGQGT TB
TMBASD2 TBTMBGLBF TBTMBGLIN TBUNGLDBN TB
KSTAACC TBTLOBETA TBTISTRAT TB
KASKTPF TBKFIXINC TBKFAFIXI TBKTSFIPA TB
TMBGOLD TB
ISIN
TH5969010005TH5820010004TH9296010001TH6351010009
TH7628010004TH2560010005TH7232010002TH8385010005
TH1557010002TH3054010006TH1127010003
TH2733010007TH1145010001TH7481010000TH7323010002
TH3190010001
FIF Equities
FIF Fixed Income
Equities
Fixed Income
Others
Portfolio composition – June 2020
Asset Allocation*
Monthly Market Update – June 2020
Reference allocation:50%Fixed Income, 50% Equities This profile is designed for investors having an average risk tolerance and targeting medium and long-term capital appreciation.
Benchmark :Composite Index **
Sub-fund launch date: 30/12/2016
Investment Objective
** Index composition :
10% MSCI AC ASIA EX JAPAN +30% BANGKOK SET +18% THAI BOND DEALING CENTER GOVT BOND GRP 1 TOTAL RETURN INDEX +20% BLOOMBERG BARCLAYS GLOBAL AGGREGATE HEDGED +10% MSCI WORLD +3% THAI BOND DEALING CENTER CORPORATE BOND GRP 1 TOTAL RETURN INDEX (BBB UP) +9% THAI BOND DEALING CENTER SHORT TERM GOVT BOND TOTAL RETURN INDEX
Portfolio Management Fee :
Portfolio Management Fee (Exclude vat) Not Exceeding 1.5% P.A. of AUM (Actual Fee 0.5% P.A. of AUM)
PortfolioBenchmarkSpread
201711.80%10.18%
1.62%
2018 -5.21%-4.04%-1.16%
20197.98%6.35%1.62%
2016---
2015---
* This portfolio allocation will evolve depending on the market condition or other economic factors.
The portfolio outperformed its benchmark delivering +2.29% vs +0.59%. This month, the overweight Global Bonds and the allocation to Gold contributed the most to the performance. On the fund level, Thai equities (K STAR and Tisco high Div) and Asia ex japan equity funds (TMB China Opportunity) were the key contributors.
Maximum drawdowWorst monthLowest returnBest monthHighest return
Portfolio volatility
Benchmark volatility
3 years
8.18%
7.81%
1 year
12.45%
11.91%
5 years
-
-
Portfolio commentary
Performance analytics
Risk analysis (rolling)
Strategy
-18.82%Mar-20-8.91%Apr-205.81%
Inception to date
In the current context where we consider that equity markets are probably too optimistic, we remain cautious and we decided to reduce further equity exposure after the recent rally by selling Thai and European equity funds (Tisco High Div, TMB Thai Mid Small Min Variance, and One European Equity). Within Thai equities, we also decided to have a more defensive exposure with the introduction of Thanachart Low Beta fund, and we increase our tilt towards core and growth fund such as K Star and Tisco Strategic. In Asia, we decided to sell ASEAN fund and replace it by TMB Eastspring Asia Active Equity in order to have a greater focus on North Asian countries that should be the first-out of the pandemic. On developed equities, we decided to reduce core exposure (TMB Eastspring Global Core Equity) to increase our bias towards quality growth stocks (via TMB Global Quality growth) which should show more resilience in this uncertain environment. On fixed income markets, we are constructive on Thai fixed income, but we have now a preference for global fixed income which offers some portfolio protection thanks to global core government bonds and at the same time should bring additional return with a reasonable risk thanks to broad credit space diversification. Therefore, we decide to reinforce global bonds allocation (via TMB Global Bond, TMB Global income and United Global Dynamic Bond). Within Thai fixed income allocation, given the expected easing of financial conditions, we prefer to sell Money Market Funds (TMB Treasury and K Cash Management) to reinvest on Aggregate funds (Krung Thai Short Term Fixed income plus, K fixed income and Krungsri Active income fund) which should benefit from credit spreads tightening looking forward. Finally, given the great uncertainty of the outlook, we decide to introduce a position on Gold which should act as a macro-hedge.
** The summation of portfolio return and the spread may not equal to the benchmark return because of the rounding effect
As of 30 June 2020
18.34%
% Investment Portion
29.25%24.10%25.18%
Others 3.13%
FIF EquitiesFIF Fixed IncomeEquitiesFixed Income
18.34%
25.18%
24.10%
29.25%
3.13%
06
07
Table of content
This summary is a part of the prospectus which only sets out information relating to the policy, return, risks and conditions of the fund. Investors must study the information in details from the full prospectus before making an investment decision. Full prospectus can be requested from a selling agent and the Management Company. Investors may also study information from the prospectus that was submitted by the Management Company to The Securities and Exchange Commission (SEC) on SEC’s website. If you have any questions, please ask your investment advisor before buying investment units. Investors should make investment only when they see that the fund is suitable to their objectives and that they can accept potential risks from such investment.
For customer’srisk level 4ADVANCED PORTFOLIO
Monthly Performances and Risks statistics
TMB CHINA OPPORTUNITY FUND TMB EASTSPRING ASIA ACTIVE EQUITYTMB EASTSPRING GLO CORE EQTMB GLOBAL QUALITY GROWTH FUNDUNITED GLOBAL HEALTHCARE FUND
TMB ASIAN BOND FUNDTMB GLOBAL BOND FUNDTMB GLOBAL INCOME FUND
K STAR EQUITY FUND-A ACCTHANACHART LOW BETATISCO HIGH DIVIDEND EQUITY FUNDTISCO STRATEGIC INCOME
K FIXED INCOME FUNDKRUNGSRI ACTIVE FIXED INCOME A
TMB GOLD SINGAPORE FUND
Asset Allocation*
% weight28.59%
8.26%7.20%2.98%7.12%3.03%
23.29%4.06%
13.21%6.02%
32.82%16.43%
8.71%3.79%3.89%
11.12%6.06%5.06%4.19%4.19%
Bloomberg
TMBCOPF TBTMBAGLF TBTMBESGC TBTMBGQGT TBUOBUGHF TB
TMBASD2 TBTMBGLBF TBTMBGLIN TB
KSTAACC TBTLOBETA TBTISCOHD TBTISTRAT TB
KFIXINC TBKFAFIXI TB
TMBGOLD TB
ISIN
TH5969010005TH5820010004TH9296010001TH6351010009TH5842010008
TH7628010004TH2560010005TH7232010002
TH1557010002TH3054010006TH3221010004TH1127010003
TH1145010001TH7481010000
TH3190010001
FIF Equities
FIF Fixed Income
Equities
Fixed Income
Others
Portfolio composition – June 2020
28.59%
% Investment Portion
23.29%32.82%11.12%
Others 4.19%
FIF EquitiesFIF Fixed IncomeEquitiesFixed Income
Monthly Market Update – June 2020
PortfolioBenchmarkSpread
3 months14.22%11.98%
2.24%
1 month3.25%0.76%2.49%
6 months-6.24%-4.81%-1.44%
YTD-6.24%-4.81%-1.44%
S.I.(% p.a.)2.39%2.42%
-0.03%
Performance Evolution (Base 100)*
Calendar year performance
Past performance (%)
Portfolio BenchmarkReference allocation: 30% Fixed Income,70% Equities Thisprofileis designed for investors having a medium to high risk tolerance and prepared to bear a potential loss.
Benchmark :Composite Index **
Sub-fund launch date: 30/12/2016
Investment Objective
** Index composition :
40% BANGKOK SET +15% MSCI AC ASIA EX JAPAN +9% THAI BOND DEALING CENTER GOVT BOND GRP 1 TOTAL RETURN INDEX +15% BLOOMBERG BARCLAYS GLOBAL AGGREGATE HEDGED +4% THAI BOND DEALING CENTER SHORT TERM GOVT BOND TOTAL RETURN INDEX +15% MSCI WORLD +2% THAI BOND DEALING CENTER CORPORATE BOND GRP 1 TOTAL RETURN INDEX (BBB UP)
Portfolio Management Fee :
Portfolio Management Fee (Exclude vat) Not Exceeding 1.5% P.A. of AUM (Actual Fee 1.0% P.A. of AUM)
PortfolioBenchmarkSpread
201714.90%13.50%
1.40%
2018-7.97%-6.22%-1.74%
20199.56%7.31%2.25%
2016---
2015---
28.59%
11.12%
32.82%
23.29%
4.19%
* This portfolio allocation will evolve depending on the market condition or other economic factors.
The portfolio outperformed its benchmark delivering +3.25% vs +0.76%. This month, the overweight Global Bonds and the allocation to Gold contributed the most to the performance. On the fund level, Thai equities (K STAR and Tisco high Div), Asia ex japan equity funds, and TMB Global Quality Growth were the key contributors.
Maximum drawdownWorst monthLowest returnBest monthHighest return
Portfolio volatilityBenchmark volatility
3 years
11.18%
10.76%
1 year
16.92%
16.30%
5 years
-
-
Portfolio commentary
Performance analytics
Risk analysis (rolling)
Strategy
-26.04%Mar-20
-11.25%Apr-208.01%
Inception to date
In the current context where we consider that equity markets are too optimistic, we remain cautious and decided to reduce further equity exposure after the recent rally by selling Thai and European equity funds (Tisco High Div, TMB Thai Mid Small Min Variance, and One European Equity). Within Thai equities, we also decided to have a more defensive exposure with the introduction of Thanachart Low Beta fund, and we increased our tilt towards core and growth fund such as K Star and Tisco Strategic. In Asia, we decided to sell ASEAN fund and replace it by TMB Eastspring Asia Active Equity in order to have a greater focus on North Asian countries that should be the first-out of the pandemic. On developed equities, we decided to reduce core exposure (TMB Eastspring Global Core Equity) to increase our bias towards quality growth stocks (via TMB Global Quality growth) which should show more resilience in this uncertain environment. Finally, we decided to reduce TMB Global Property which could continue to suffer given prolonged restrictions to people gathering, and we reinvested on United Healthcare fund which appears as a good defensive theme in the current environment. On fixed income markets, we are constructive on Thai fixed income, but we have now a preference for global fixed income which offers some portfolio protection thanks to global core government bonds and at the same time should bring additional return with a reasonable risk thanks to broad credit space diversification. Therefore, we decide to reinforce global bonds allocation (via TMB Global Bond and TMB Global income). Within Thai fixed income allocation, given the expected easing of financial conditions, we prefer to sell Money Market Funds (TMB Treasury and K Cash Management) to reinvest on Aggregate funds (K fixed income and Krungsri Active income fund) which should benefit from credit spreads tightening looking forward.Finally, given the great uncertainty of the outlook, we decide to introduce a position on Gold which should act as a macrohedge.
** The summation of portfolio return and the spread may not equal to the benchmark return because of the rounding effect
As of 30 June 2020
08
09
AGGRESSIVE PORTFOLIOMonthly Performances and Risks statistics
For customer’srisk level 5
Table of content
This summary is a part of the prospectus which only sets out information relating to the policy, return, risks and conditions of the fund. Investors must study the information in details from the full prospectus before making an investment decision. Full prospectus can be requested from a selling agent and the Management Company. Investors may also study information from the prospectus that was submitted by the Management Company to The Securities and Exchange Commission (SEC) on SEC’s website. If you have any questions, please ask your investment advisor before buying investment units. Investors should make investment only when they see that the fund is suitable to their objectives and that they can accept potential risks from such investment.
Portfolio composition – June 2020
Monthly Market Update – June 2020
Benchmark :Composite Index **
Sub-fund launch date: 30/12/2016
Investment Objective
** Index composition :
50% BANGKOK SET + 25% MSCI AC ASIA EX JAPAN + 25% MSCI WORLD
Portfolio Management Fee :
Portfolio Management Fee (Exclude vat) Not Exceeding 1.5% P.A. of AUM (Actual Fee 1.0% P.A. of AUM)
PortfolioBenchmarkSpread
3 months20.11%15.90%
4.21%
1 month4.74%1.13%3.61%
6 months-8.83%-7.55%-1.27%
YTD-8.83%-7.55%-1.27%
S.I. (% p.a.)1.90%2.17%
-0.27%
Performance Evolution (Base 100)*
Calendar year performance
Past performance (%)
Portfolio Benchmark
Asset Allocation*
PortfolioBenchmarkSpread
201719.68%18.67%
1.01%
2018-12.39%
-9.62%-2.76%
201911.73%
8.73%3.00%
2016---
2015---
FIF EquitiesFIF Fixed Income
47.92%
% Investment Portion
5.11%Equities 41.70%Others 5.27%
KTAM ASEAN EQ-ATMB CHINA OPPORTUNITY FUND TMB EASTSPRING ASIA ACTIVE EQUITYTMB EASTSPRING GLO CORE EQTMB GLOBAL QUALITY GROWTH FUNDUNITED GLOBAL HEALTHCARE FUND
TMB GLOBAL INCOME FUND
K STAR EQUITY FUND-A ACCTHANACHART LOW BETATISCO HIGH DIVIDEND EQUITY FUNDTISCO STRATEGIC INCOME
TMB GOLD SINGAPORE
% weight47.92%
3.84%10.38%11.37%
5.99%11.26%
5.08%5.11%5.11%
41.70%18.47%11.67%
6.67%4.89%5.27%5.27%
Bloomberg
KTASEAN TBTMBCOPF TBTMBAGLF TBTMBESGC TBTMBGQGT TBUOBUGHF TB
TMBGLBF TB
KSTAACC TBTLOBETA TBTISCOHD TBTISTRAT TB
TMBGOLD TB
ISIN
TH6401010009TH5969010005TH5820010004TH9296010001TH6351010009TH5842010008
TH2560010005
TH1557010002TH3054010006TH3221010004TH1127010003
TH3190010001
FIF Equities
FIF Fixed Income
Equities
Others
The portfolio outperformed its benchmark delivering +4.74% vs +1.13%. This month, the allocation to Gold and to Thematics contributed the most to performance. On the fund level, Thai equities (K STAR and Tisco high Div), Asia ex japan equity funds and TMB Global Quality Growth were the key contributors.
Maximum drawdown
Worst month
Lowest return
Best month
Highest return
Portfolio volatility
Benchmark volatility
3 years
15.55%
15.15%
1 year
23.27%
22.66%
5 years
-
-
In the current context where we consider that equity markets are probably too optimistic, we remain cautious and we decided to reduce further equity exposure after the recent rally by selling Thai and European equity funds (Tisco High Div, TMB Thai Mid Small Min Variance, and One European Equity). Within Thai equities, we also decided to have a more defensive exposure with the introduction of Thanachart Low Beta fund, and we increased our tilt towards core and growth fund such as K Star and Tisco Strategic. In Asia, we decided to sell ASEAN fund and replace it by TMB Eastspring Asia Active Equity in order to have a greater focus on North Asian countries that should be the first-out of the pandemic. On developed equities, we decided to sell financial sector bet (KTAM Global Financial services) to reinvest on broader core equity exposure (TMB Eastspring Global Core Equity). We also increased our bias towards quality growth stocks (via TMB Global Quality growth) which should show more resilience in this uncertain environment. Finally, we decided to reduce TMB Global Property which could continue to suffer in this context of restrictions to people gathering, and we reinvested on United Healthcare fund which appears as a more defensive theme in the current environment. In this aggressive portfolio, given our cautiousstance on equity we decide to keep a position in global fixed income. Within this pocket, we decide to sell TMB Global Income to reinvest on a more defensive fund, TMB Global bond, which could act as a macro hedge in case of a market correction given its large exposure to safe assets, in particular US government bonds. Finally, given the great uncertainty of the outlook, we also decide to introduce a position on Gold (TMB Gold Singapore) which should offer some protection to the portfolio.
Portfolio commentary
Performance analytics
Risk analysis (rolling)
Strategy
-36.53%
Mar-20
-14.83%
Apr-20
11.26%
Inception to date
Reference allocation: 100% EquitiesThis profile is designed for investors having a high risk tolerance and prepared to bear strong market volatility.
* This portfolio allocation will evolve depending on the market condition or other economic factors.
** The summation of portfolio return and the spread may not equal to the benchmark return because of the rounding effect
As of 30 June 2020
5.11%
41.70%
47.92%
5.27%
10
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