Honorary Award for Best Fund of the Year 2568, Domestic Equity Fund Category, Principal Asset Management Co., Ltd.
Principal Asset Management Co., Ltd. received the Best Fund of the Year 2568 award in the Domestic Equity Fund category for the Principal Dividend Equity Fund (PRINCIPAL DEF).
Jumpol Saimala, Chief Executive Officer, Principal Asset Management Co., Ltd. He expressed his feelings about receiving the award, saying that he was honored and proud to receive this award once again. He thanked all investors and customers, and thanked the fund management team for consistently creating excellent work, which led to the award being received for two consecutive years.
From the committee's selection process, it can be seen that the selection of the best funds uses international standards, particularly in terms of returns, using Total Return and Risk-adjusted Return as international standards. Standard Deviation is used to assess fund volatility, including consideration of fund size. A three-year period for comparison and selection is considered long enough to allow clients to see the consistency of fund management.
“All aspects of our work demonstrate that Principal Asset Management has consistently achieved high standards and is the best in the industry, earning this award once again. We believe that we will continue to receive long-term investor support in the future.”
Risk Management-Teamwork
Fund Success Factors
Chatri Meechaicharoenying, Head of Investment, Equity Department, Principal Asset Management Co., Ltd. PRINCIPAL DEF's two consecutive years of winning the Best Fund award are a testament to the company's investment process being designed on the right track. The past year has been a challenging one, with markets experiencing significant market volatility and rapid changes in both domestic and international factors. The company's commitment to a robust investment process that is flexible enough to adapt to changing market conditions remains a key priority.
“Our team does a lot of homework, not just analyzing stocks. We also consider the big picture, the global economy, and market psychology. This helps us see both opportunities and risks, enabling us to adjust our portfolios appropriately.”
Another important issue is “risk management.” Principal Asset Management does not simply focus on creating a portfolio to maximize returns. Risk management must also be integrated, and investors will not be exposed to unnecessary risks.
Furthermore, we have a strong team. Everyone on the team works together, constantly communicating and exchanging information, allowing for more informed decision-making. Ultimately, the result is a team management model that is a home model, where everyone participates in every decision.
For 2568, Chatri sees investing in the Thai stock market as challenging. Principal Asset Management is adapting through risk and liquidity management. Given the significant decline in Thai stock market liquidity, it is reducing its investment in mid- and small-cap stocks and focusing more on individual stock liquidity than usual.
Therefore, searching for attractive stocks in 2568 isn't just about growth stocks; it's also about finding stocks whose business models can weather volatility. When selecting dividend stocks, during a sluggish economy, listed company profits may be on the decline. Historical dividend payout data may not guarantee future dividends. Therefore, understanding the business model and estimating profits for the following year must be more accurate.
For example, if a company in question is a commodity-linked business, and its business is highly volatile due to global economic cycles, simply looking at historical dividend yields is insufficient. Therefore, investors are advised to focus on businesses with low volatility and the ability to maintain profits at the same level in the future, along with considering past 3-4 years of profits and dividend payment history.
Investment outlook for the second half of the year: “Neutral”
Regarding investment trends and directions for the second half of 2568, Supakorn Tulayathun, Chief Investment Officer of Principal Asset Management, stated that he maintains a "neutral" view, particularly on the US market. Despite the overall strength of the economy, risks stemming from relatively high valuations and an overreliance on technology stocks could lead to increased market volatility if selling pressure occurs. Furthermore, uncertainty surrounding the trade war, which has yet to be resolved, remains a significant pressure on the global investment climate.
European, Japanese, and Asian markets are beginning to see the impact of US President Donald Trump's tax policies, which are impacting global economic growth trends in the second half of the year. Overall, however, central banks in many countries are expected to cut interest rates further to prevent their economies from falling into a severe recession.
The Thai stock market experienced a sharp decline in the first half of the year due to both domestic and international factors. The domestic economy remains weak, particularly in the tourism sector, which is recovering slower than expected. This means that GDP growth in the second half of the year may be lower than in the first half.
However, in terms of valuation, the Thai stock market is trading significantly below average, limiting downside potential. We maintain a neutral view of the Thai market. We must remain cautious about trade war volatility in the second half of the year. However, if the situation improves, coupled with lower interest rates and additional economic stimulus measures, this will be a significant boost for the market to recover in the coming period.
The global situation is uncertain
Multi-Asset Investment Recommendation
Supakorn stated that in a world facing high uncertainty, stemming from trade wars, geopolitical risks, and diverging monetary policies from central banks, the most important factor for investors is "portfolio flexibility." Diversifying investments across multiple assets and geographies through multi-asset funds managed by fund managers is therefore highly recommended.
Principal Asset Management offers a range of Multi-Asset funds covering various risk levels to meet the needs of all types of investors, including:
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- PRINCIPAL MAINCOME: Focus on income stability (invest 60% in debt instruments and 40% in stocks/growth assets)
- PRINCIPAL MABALANCED: Balance stable income with growth opportunities (Invest 50% in stable assets and 50% in global stocks/growth assets).
- PRINCIPAL MAGLOBAL: Focus on long-term growth (70% invested in global equities and 30% in stable assets)
All three funds are designed to flexibly adjust their investment allocations according to market conditions, with experienced fund managers closely managing the funds to mitigate risks from trade tensions and changes in global economic policy.
Active Portfolio Management
Invest in megatrend themes
Suphakorn stated that during times of market volatility, proactive portfolio management is essential, a strength of Principal Asset Management. As part of the Principal Financial Group, with its global investment network, we have the advantage of exchanging information and analyzing real-time situations with teams in each region, enabling comprehensive assessment of investment conditions and rapid response to changes.
Multi-Assets funds, particularly PRINCIPAL MABALANCE, have demonstrated their ability to adapt their portfolios to all market conditions and generate stable returns, ranking in the top 2 quartile of their industry group in both the short and long term.
Principal Asset Management also seeks opportunities from long-term investment themes that align with global changes, even during periods of market volatility. A clear example is the shift of the PRINCIPAL GCLEAN master fund to invest in nuclear energy stocks, a clean energy source capable of generating consistent electricity and supporting the increasing demand for electricity driven by the growth of AI and data centers.
Since the change of the main fund, PRINCIPAL GCLEAN has increased by more than 42%, becoming the first and only fund in the market to invest 100% in the nuclear energy industry. All of this reflects the potential of selecting investment themes that are aligned with megatrends, even during times of market volatility.
Warning: Investors should understand the nature of the product (fund), conditions, returns, and risks before making an investment decision. PRINCIPAL GCLEAN The main fund invests concentratedly in the United States. Investors should therefore consider the diversification of their overall investment portfolio. This fund invests concentratedly in businesses related to nuclear and uranium. Investors should study the information in the prospectus before making an investment decision. The fund has a policy of investing abroad. The fund may be exposed to exchange rate risk. Investors may lose or gain from exchange rates or receive a refund lower than the initial investment. The management company uses futures contracts as a tool to hedge the fund's exchange rate risk (Hedging). This is at the discretion of the fund manager. Investors should study the information in the prospectus before making an investment decision. Past performance is not a guarantee of future performance.
