UOB Asset Management (Thailand) (UOBAM) is embarking on a comprehensive expansion of its investment services this year, focusing on US equities, environmental, social and governance-related (ESG) assets, and gold.
Chief executive Vana Bulbon said UOBAM continues to expand its investment management business, catering to institutional, corporate and retail clients through mutual funds, private funds and provident funds.
Leveraging UOB Group's regional network, the company aims to enhance its full-service investment offerings, he said.
As of the end of 2024, the company's assets under management (AUM) tallied 273 billion, representing 10% growth year-on-year.
The provident fund business saw strong growth, securing mandates from major institutions like the Electricity Generating Authority of Thailand and the Government Savings Bank. As a result, UOBAM moved up to the sixth position among 17 asset management firms in Thailand.
UOBAM plans to broaden its investment product lineup in 2025, focusing on a one-stop advisory service for institutional clients and tailored investment solutions for retail investors.
Key initiatives include monthly term fund offerings, private credit funds for alternative fixed-income investments, US dollar-denominated investment funds and retirement solution funds designed for long-term financial planning.
Mr Vana said global economic growth is anticipated to remain resilient, with moderate inflation and a very low probability of recession in 2025, creating a favourable environment for investment.
The Federal Reserve is expected to cut interest rates 1-2 times this year, while monetary easing by major global economies will continue to support economic expansion.
"The recent trade tax hikes are likely to be used as a negotiation tool rather than an intentional move towards a trade war," he said.
The company sees strong growth potential of the equity market, supported by robust US consumer spending and China's stimulus measures. Emerging markets, especially in Asia, are also showing signs of recovery.
UOBAM recommends increasing equity exposure, particularly in developed markets, namely the US, while maintaining a balanced asset allocation across various investment vehicles, including fixed income, ESG-focused funds and alternative assets.
"With US market growth supported by corporate profit growth and President Donald Trump's economic stimulus policies, the stock market remains on an upward trajectory. However, the key risk for global equities lies in the US trade tax hikes and stricter immigration policies, which could drive inflation higher in the future," said Mr Vana.
This may affect central banks' ability to cut interest rates, leading to increased market volatility, he said.
Given this outlook, UOBAM recommends overweighting equities, while reducing bond exposure to a low-to-moderate level. Investors are also advised to diversify across multiple asset classes to mitigate potential risks.