XSpring Asset Management has upgraded its investment weighting for the Thai stock market from Underweight to Neutral. Chief Executive Officer Yossakorn Follett said the supporting factors are valuations that are neither cheap nor expensive, a dividend yield of 3 to 3.5 percent per year, a stable government, and foreign investment flows that have begun returning since the start of the year, though not yet matching the outflows seen over the previous three years. He estimates that the SET Index has limited upside of around 1,650 points by the end of this year, excluding the impact of the flood situation, and could reach 1,700 points in 2027 if the Stock Exchange of Thailand succeeds in attracting large companies or quality family businesses to list, thereby increasing the market capitalization of the Thai stock market. Sectors of interest include consumer goods and semiconductors, while commercial banks require stock-by-stock selection and a wait to assess the impact of the floods on non-performing loans. On the mutual fund business under XSpring AM's management, net asset value stands at approximately 3.4 to 4.5 billion baht, with a target to grow to 5 to 6 billion baht by the end of this year, while private funds stand at 6.8 to 7 billion baht and are expected to exceed 10 billion baht by year-end, driven by large clients, with three to four more currently under negotiation. As a result, total assets under management this year are expected to close at 16 billion baht, growing about 60 percent from 10 billion baht last year. XSpring AM is currently offering an initial public offering of the XSpring Open Australian Equity Fund, the first Australian equity fund in Thailand, and in the fourth quarter plans to launch a diversified commodity fund and a small-cap US value equity fund.
XSpring AM upgraded Thai equity weighting to Neutral and targets AUM growth to 16 billion baht, up ~60% from last year.
