Family wealth planning, land loans loom large in 2021 strategy
KBank Private Banking (KPB) has announced that it has achieved more than 9-per-cent growth in its customer portfolio in 2020, despite the economic devastation of the COVID-19 pandemic.
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The firm says this shows that its investment strategy is capable of generating sustainable returns regardless of economic circumstances. As well, it has continued to focus on its ‘3S’ strategies of Sustainability, Sharing and New S-Curve. KPB is confident that it will maintain its leadership in the Thai private-banking industry in 2021.
The Head of the KBank Private Banking Group, Jirawat Supornpaibul, said that the pandemic sent global stocks into a tailspin early this year, but they bounced back. Of late, many bourses, including China’s A-share and the US and Japanese stock markets, have rebounded to pre-pandemic levels.
He said that KBank Private Banking Group’s business operations continued to grow in 2020, with approximately 12,000 customers and assets under management valued at about Bt800 billion. Total investment assets currently stand at around Bt540 billion, or roughly 67 per cent of the overall figure.
The bank remains confident in its investment strategies that focus on diversification under a ‘core and satellite’ investment approach. Notably, its recommended funds have offered remarkable returns, including K-GA; K-CCTV, which invests in China’s A-Shares; K-CHANGE, which focuses on global stocks of companies operating businesses that positively impact global society; and K-HIT, which invests mainly in shares of four megatrends.
The company recommends that its customers invest in its K-Alpha and aspiration portfolio, which focuses on long-term alternatives. This recommended portfolio generated a return of 9 per cent in 2020.
Jirawat said that throughout 2020, KPB maintained its 3S strategies.
The first S is for ‘Sustainability’, in which KPB offers investment advisory services that have sustainable goals. It seeks and initiates investments that will create a positive impact on the environment and society.
The second S is ‘Sharing’, as KBank believes that individuals and society must forge ahead together. For this reason, it has collaborated with all sectors, including charitable organizations and relevant agencies, to provide support to build societal unity in a sustainable manner.
The third S is ‘New S-Curve’, in which KBank helps its customers to build their wealth by investing in businesses of the future abroad, via mutual funds.
Meanwhile, KPB is organizing an event called “Perfect Wealth Perfect Night Special Concert”, to help charitable organizations in Thailand. At this event, KPB will coordinate with donors and recipients to ensure that funds donated to charitable organizations are systematically passed on to the recipients.
In addition, KPB will offer financial-literacy advice to charitable organizations so that they have stronger financial health and sustainable asset-management systems.
Family wealth-planning services will continue to be a vital means by which KPB will foster strong relationships with its customers, while expanding its new-customer base.
Jirawat said that in 2021, KBank will continue to reinforce its image as a provider of the most comprehensive personal financial advisory services in Thailand. It is expected to introduce an array of new services, including helping clients to set up family offices and carrying out philanthropic and passion-investment activities, such as art and amulet collection.
A Real Estate Advisory Service will offer advice on land-use planning and monitoring. Based on conversations with customers concerned about land and building taxes, it was found that 90 per cent of land in question was still awaiting development, or was not ready for development, which could incur higher tax rates for customers.
KBank believes that land loans for investment will be crucial to increasing its assets under management. More than 100 customers have expressed interest in such loans. KBank has already approved a credit limit of around Bt9 billion and is in the process of approving another Bt5 billion for land loans.
