Krungsri Asset Management holds a seminar on "High Quality Investments amidst the World of Instabili
Krungsri Asset Management launches "Krungsri Global Brand Equity Dividend Fund (KF-GBRAND)" citing it is a concentrated, high quality equity fund offering earnings resilience and long-term return potential. The Fund should be one among main assets of a high-quality portfolio.
Mr. Dan Harsono, Head of Retail and Consumer Banking at Bank of Ayudhya, recently presided over the seminar on the topic "High Quality Investments amidst the World of Instability." Morgan Stanley Investment Management's Managing Director and Portfolio Specialist - Ms. Laura Bottega who represented the Investment team for the Morgan Stanley Investment Funds (MS INVF) Global Brands Fund, and Krungsri Asset Management’s Vice President for Alternative Investment Department - Ms. Chatkaew Groatong were invited to join the event. Both experts exchanged their views on investment opportunities in high quality stocks and how “brands” help differentiate them from the competition. They also talked about the fund’s investment approach, the fund’s securities selection criteria, risk management, the fund’s portfolio and past performance records. The seminar was held at Intercontinental Hotel, Bangkok on July 26.
Ms. Chatkaew Groatong said, "Given the world's financial market volatility is caused by several factors, investment for satisfactory and steady returns has becomes more challenging. Thus, we have come up with a new financial product that aims to create long-term wealth from investing in high quality equities.. Therefore, the open-ended KF-GBRAND Fund, which will invest in the master fund -MS INVF Global Brands Fund, is being introduced. Having been established for more than 15 years, the master fund has achieved positive returns for 14 of the last 15 calendar years. The fund suffered negative returns only in 2008 during the Global Financial Crisis. During that period it fell less than its benchmark but recovered faster due to the resilient nature of the earnings from the companies”.
Source: Morgan Stanley Investment Management as of 30 April 16 | Investors should understand fund features, conditions of return, and risk before making an investment decision. Past performance is not an indicative of future result.
Ms. Laura Bottega, who represented the Investment Team for the –MS INVF Global Brands Fund, said, “The fund focuses its investment on high-quality companies across the globe, specifically selecting individual stocks that prove resilient to economic cycles, have growth potential, worldwide customer bases and income sources from Europe, the United States, and developing countries as well as across multiple product lines, Such investment diversification helps mitigate risks to a single country's or specific regional economic slowdown. In addition, these companies must have competitive advantages with few competitors on the back of strong brand identities that make their brands difficult to imitate, resulting in pricing power, high gross margins which leads to generating high returns on capital employed from the business’s operations."
Source: Factsheet, Morgan Stanley Investment Management as of 31 Mar 16
The fund avoids over paying for stocks and its investment portfolio is priced at 21 times 2017 Free Cash Flow or yields 4.8% while the US 10 Treasury yield is currently about 1.5%. The industry groups in which the main fund invests include companies involved in consumer products for the daily life such as food and beverages, household items, and personal products. The Consumer Staples sector has seen outstanding returns for over 20 years asits net profit has been higher than the MSCI World's, while its P/E ratio hasn’t had any major relative shift. Top stock picks of the master fund include Reckitt Benckiser, British American Tobacco, L’Oreal, Microsoft, Unilever and Nestle. (Source: Morgan Stanley Investment Management as of 30 June 2016).
Source: Morgan Stanley Investment Management as of 30 Jun 16
The MS INVF Global Brands Fund is managed by a team of fund managers with combined investment experiences of over 150 years. The goal of the master fund is to compound shareholder wealth at a superior rate over the long-term; capital preservation is a key to the ability to compound money over time. The master fund’s investment team has found that the economic robustness of quality companies helps to deliver returns when they are needed the most – during difficult and challenging market environments. The specific investment criteria and the disciplined manner in which it is applied it enables the Morgan Stanley Investment Funds Global Brands Fund to offer strongly differentiated performance and risk characteristics compared to many global equity peers.
KF-GBRAND open-ended fund will be an investment alternative which seeks to keep pace during upmarkets, but offer capital preservation during difficult and challenging market conditions. Krungsri Asset Management has carefully selected this master fund from a global fund house - Morgan Stanley Investment Management - which has over 40-years experience and USD 405 billion assets under its management. Its parent company, Morgan Stanley, is a publicly listed company on the New York stock exchange - one of the world's biggest financial institutions, the Mitsubishi UFJ Financial Group, is its largest shareholder.
Source: Morgan Stanley Investment Management as of 31 Mar 16 | MUFG is major shareholder of Morgan Stanley (MS) by holding 22% share. Morgan Stanley Investment Management is 100% owned by MS. | Past performance is not an indicative of future result.
Investors can ask for more details on the Fund at
- Krungsri Asset Management, call 02-657-5757; or
- Any branch of Bank of Ayudhya; and
- Distributors of investment units on behalf of KSAM.
Remark: Bank of Ayudhya Public Company Limited (as a distributor of investment units on behalf of Krungsri Asset Management Co., Ltd. only)
Disclaimer
1. Investors should understand fund features, conditions of return, and risk before making an investment decision. Past performance is not an indicative of future result.
2. Krungsri Global Brands Equity Dividend Fund (“The Fund”) invests in Morgan Stanley Investment Funds – Global Brands Fund (“The Master Fund”) with policy to invest primarily in equity securities of companies in the world’s developed countries. The Fund will invest in a concentrated portfolio of companies whose success the Company believes depends on intangible assets (for example, but not limited to, brand names, copyrights or methods of distribution) underpinning a strong business franchise, therefore the Fund may have risks from economic and/or political and/or social changes in the country where the master fund invested in. | The Fund’s Risk level: 6 – High risk
3. The fund may enter into a currency swap within discretion of fund manager which may incur transaction costs. The increased costs will reduce overall return. In absence of a currency swap, investors may lose or gain from foreign exchange or receive lower return than the amount initially invested.
4. The fund and/or master fund may invest in or make available a forward contract to enhance efficiency in investment management. This means the fund may contain higher risks than other funds and therefore the fund is suitable for investors who prefer higher return with higher risk tolerance than general investors. Investors should make investment only when they understand the risks of the contract by considering their investment experience, investment objectives and financial status.
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