Krungsri Asset Management changes its core fund to enhance the performance of its Chinese A-Shares portfolio.

Krungsri Asset Management has adjusted the strategy of three Chinese A-Shares funds, replacing the core funds with the Goldman Sachs China A-Share Equity Portfolio. This aims to enhance return potential and capitalize on growth opportunities from the “New China” theme and the expansion of AI.

Date 8 July 2569 Krungsri Asset Management announced a revision of its investment strategy for its portfolio of funds focusing on Chinese A-Shares, including KF-ACHINA-A, KF-ACHINARMF, and KF-ACHINASSF, by replacing the underlying fund with the Goldman Sachs China A-Share Equity Portfolio. Effective from July 8, 2569 onwards.

The purpose of this change to the core fund is to enhance return performance by utilizing a fund with an active investment strategy aligned with market conditions and expertise in investing in the Chinese stock market.

Krungsri Asset Management views the Chinese A-Shares market as crucial to the long-term economic growth of China, as it is a hub for domestically operated companies and benefits from the transition to a new economic era. "New China" It encompasses high-tech industries, modern manufacturing, domestic consumption, and innovation-related businesses.

Furthermore, the Chinese A-Shares market is supported by several structural factors, particularly the growth of AI technology, which plays a significant role in driving the economy, the recovery of listed companies' earnings, and high liquidity in the system, which may support the growth prospects of the Chinese stock market in the coming period.

The Goldman Sachs China A-Share Equity Portfolio, a core fund, stands out due to its management team having an average of 17 years of experience and a team based in the field. This enables them to closely monitor, analyze, and select investment opportunities in the Chinese stock market. The fund employs an active portfolio management approach, focusing on selecting companies with high growth potential, strong fundamentals, competitive advantages, and benefits from the “New China” theme. The portfolio is managed in a balanced manner between growth and defensive stocks to enhance its flexibility and adaptability to changing investment environments.

The current investment portfolio differs from the benchmark index by focusing on sectors with structural growth potential, such as industrial, materials, and consumer goods. Examples of leading stocks in the portfolio include Contemporary Amperex Technology, Zijin Mining, China Merchants Bank, Zhongji Innolight, and Kweichow Moutai.

In terms of performance, the fund's stock selection process has generated an average annual outperform (Alpha) of 2.38% over the past 10 years, with 90% of this Alpha derived from individual stock selection. This reflects the efficiency of the investment process and the expertise of the fund management team in identifying investment opportunities in companies with long-term growth potential.

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