Dr. Metinee Jongsaliswang, First Executive Vice President & Head of SCB PRIVATE BANKING revealed that, "In the previous year, financial and capital markets worldwide experienced high volatility as never before due to the unprecedented impacts of the COVID-19 epidemic. The Bank closely monitored the situation and provided advice to our clients to ensure that they exercised the right strategies for risk management and investment portfolio adjustments. Last year (1 January -31 December 2020), moderate asset allocation portfolios demonstrated outstanding performance yielding returns as high as 14.90% within one year, higher than other medium-risk investment portfolios, as defined by Association of Investment Management Companies (AIMC)*, with the median value of such peer group standing at -1.06% **, and only -5.24% when comparing with the SET TRI Index. These portfolios combined a mix of products from the SCB Group and other business partners on the Open Architecture platform, which SCB has utilized for over five years. The move allows the Bank to tailor investment products with the highest returns for our clients."
SCB Securities Co., Ltd. CFA, Managing Director, Chief Investment Office (SCBS CIO) Mr. Sornchai Suneta noted that, "Amid drastic changes in market situations throughout the past year, SCBS CIO offered practical and appropriate advice to ensure that investment portfolios were adjusted in line with prevailing market conditions. Our recommended moderate asset allocation portfolios combined a mix of asset classes from fixed income, equities, and alternative asset, allowing more flexibility in alignment with highly volatile markets. Such a combination has shown that the investment products generating satisfactory returns were mainly equity funds and alternative funds, e.g. SCBGOLD investing in gold bullion, KFACHINA fund investing in China's A-shares, and PRINCIPAL GOPP investing in growing stocks worldwide. At the same time, fixed income assets selected for the portfolios help maintain a proper balance in avoiding fluctuations, while offering more flexibility for portfolio adjustments."
"Looking forward to 2021, clients should continue to properly diversify their risk. For a moderate asset allocation portfolio it is recommended that investors divide their holdings into 60% equities and 40% fixed income in line with the direction of the global economic recovery trend that is expected to slowly improve after the distribution of the COVID-19 vaccines to people around the world", added Mr. Sornchai.
Dr. Metinee added that, "This year, SCB PRIVATE BANKING continues to reaffirm its leading position in providing investment advice for wealth management, promoting the private banking business, one of the SCB's key strategic thrusts striving for sustainable growth. SCB PRIVATE BANKING employs a team of professional financial and private investment advisors from both SCB and SCBS, ready to offer recommendations for personalized investment portfolios, matching requirements and risk appetites. Interested customers can contact our Relationship Managers for further details about our investment products.
Advice to Investors:
- The above information is prepared by the SCBS CIO Office
- Past performance of mutual funds and investment products is not a guarantee of future results. Investors should understand product characteristics, conditions of return, and risks before making investment decisions.
- For more information, investors can contact SCB Securities Co., Ltd. at 19, Building 3, Floor 2 and 20-21, SCB Park Plaza, Ratchadapisek Road, Chatuchak, Bangkok 10900, Tel. 02-949-1999 during office hours.
* A portfolio with a combination of 25-80% equities and Risk Score equivalent to 5 (AIMC moderate allocation mutual fund)
** Median value calculated from a peer group of AIMC's moderate allocation mutual funds by selecting only one share class, and excluding SSF, SSFX, RMF, and LTF.
Source: Siam Commercial Bank