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September 2020
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AIA Thailand sets up 847 billion baht asset management unit, report says

AIA Thailand, a unit of Hong Kong-based insurer AIA Group Ltd, has set up an investment management subsidiary with 847 billion baht (US$27.30 billion) of assets.
By Goh Thean Eu   
August 14, 2020

AIA Thailand, a unit of Hong Kong-based insurer AIA Group Ltd, has set up an investment management subsidiary with 847 billion baht (US$27.30 billion) of assets, according to local English language daily Bangkok Post, quoting Sukkawat Prasurtying, chief executive officer of the new unit.

An analysis of figures published on the website of the Association of Investment Management Companies shows that this makes the unit, AIA Investment Management Thailand, the third largest asset manager in the country.

The largest are Kasikorn Asset Management and SCB Asset Management, which both had 1 over trillion baht of assets under management as of end-July.

The move also means AIA Thailand is only the third insurer in the Southeast Asian country with its own asset management unit, after Manulife and Prudential.

The Bangkok Post quotes Mr. Sukkawat as saying that assets in the new firm comprise 510 billion baht of government bonds, 100 billion baht of corporate bonds, 130 billion baht of offshore debentures, and 107 billion baht of equities and other investments. They were transferred from AIA Thailand.

He says the unit has set up nine new funds – five local and four foreign – and that it won’t offer more than 20 funds to "avoid confusing customers".

"Our funds will focus on long-term gains, covering any industry with consistent growth, and will be managed with careful risk management," Mr. Sukkawat says in the August 12 report.

AIA Group had $284 billion of total assets as of end-2019, and offices and agents in 18 countries in Asia Pacific.