Best Thailand Allocation Fund
Principal Aggressive Allocation RMF
Principal Asset Management Co., Ltd
- What were some of the asset allocation calls that helped the portfolio navigate the market volatility in 2025?
Our house view requires that we follow a decisive yet disciplined asset allocation framework that emphasizes staying invested, managing risk proactively, and maintaining broad diversification. Our philosophy combines constructive exposure to global growth opportunities with stabilizing assets, complemented by diversified income strategies. We avoid concentrated bets, instead relying on broad opportunity sets and systematic rebalancing to capture upside while reducing drawdowns. This balanced approach is designed to help portfolios remain resilient through volatile periods rather than reacting defensively after markets have already moved.
For the aggressive portfolio which is mostly invested in equities, we applied this framework with a stronger focus on growth opportunities to match its higher‑risk profile. In 2025, a key contributor to performance was our strategic overweight to global equities, which positioned the portfolio to capture market upside during rebounds and periods of improving sentiment. This was supported by keeping only a modest allocation in cash for liquidity, rather than using fixed income as part of the return strategy. Throughout the year, disciplined rebalancing and broad diversification helped manage volatility, enabling the portfolio to stay invested and navigate policy‑driven market swings without resorting to overly defensive positioning.
- What are the strengths of your investment team that have contributed to this fund’s success?
The fund’s success is driven by a deeply collaborative, team‑based investment process supported by strong governance principles. Asset allocation decisions are made through structured discussions across investment strategy, research, and portfolio oversight forums, ensuring views are challenged and risks are well understood before capital is allocated.
Equally important is the team’s strong multi‑asset experience and disciplined risk management, which allows us to act with conviction while staying anchored to long‑term objectives.
- What are the risks that are top of mind for you in 2026 and how is the portfolio positioned to mitigate these risks?
As we exit the first quarter of 2026, we remain focused on macroeconomic uncertainty, elevated valuations in parts of equity markets, and the sustainability of income in a shifting rate environment. The portfolio is positioned with diversification across asset classes, regions, and income sources, avoiding over‑concentration and maintaining flexibility to adjust as conditions evolve. This positioning allows us to stay invested with confidence while remaining well prepared for renewed volatility.
Best Thailand Equity Large-Cap Fund
Eastspring Dividend Stock
Eastspring Asset Management (Thailand) Company Limited
- What do you think contributed to the fund’s strong peer-relative performance in 2025?
Thailand’s equity market was highly volatile in 2025 due to fund outflows, global trade uncertainty, and political instability. Our bottom‑up approach, focusing on strong fundamentals and attractive valuations, helped cushion performance and reduce volatility.
- What are the strengths of your investment team that have contributed to this fund’s success?
We have a large investment team with dedicated sector specialists and we are also able to leverage on the expertise of Eastspring investment teams across Asia. Combined with our disciplined investment process, this allows us to consistently deliver strong returns while managing the drawdowns.
- What are the risks that are top of mind for you in 2026 and how is the portfolio positioned to mitigate these risks?
The Thai stock market has performed strongly year-to-date in 2026, driven by fund inflows and expectations of political stability. However, much of this optimism may already be priced in, and any delays or setbacks could lead to market corrections. To manage this risk, our fund focuses on disciplined valuation and deep business understanding, allowing us to manage volatility and select winners in uncertain conditions.
Best Thailand Equity Small/Mid-Cap
SCB Thai Equity Value Port (E-channel)
SCB Asset Management Co., Ltd.
- What were the key drivers of your fund’s outperformance in 2025?
2025 was a year that truly tested the resilience of Thai equity investors. The SET Total Return Index closed the year in negative territory at -5.98%, weighed down by a confluence of pressures — geopolitical tensions, sustained foreign capital outflows, and structural headwinds that had been building within the domestic economy for years.
Against that challenging backdrop, SCBVALUEE stood apart — delivering a return of +7.09% and generating an Alpha of 13.07% over the benchmark, driven by two primary forces:
- Sector allocation contributed 9.14%, through an overweight position in the Banking sector which delivered strong returns, combined with a timely underweight in the Transportation & Logistics and Commerce sectors, both of which posted negative performance.
- Stock selection added a further 3.93%.
This outperformance was no accident. It was the product of an investment architecture built on three foundational pillars:
Value Factor Strategy powered by Quantitative Modeling - The fund employs a Quantitative Model to identify securities trading below intrinsic value, assessed across multiple dimensions — Earnings Yield, Cash Flow Yield, and Dividend Yield. This approach proved particularly effective during periods of sustained market stress.
Systematic Portfolio Construction through Portfolio Optimization - The fund determines the weight of each holding in a disciplined, rules-driven manner — ensuring appropriate diversification, controlling for unintended risk exposures, and systematically screening out stocks at risk of becoming value traps.
Consistent Quarterly Rebalancing - Regular rebalancing keeps the portfolio attuned to shifts in fundamental value, preventing overconcentration in stocks where valuations have stretched, and reducing exposure to holdings whose underlying fundamentals have begun to deteriorate.
- What are the strengths of your investment team that have contributed to this fund’s success?
Behind the fund’s standout performance lies an investment team that seamlessly integrates three core strengths:
Deep and continuously evolving quantitative expertise - The team is committed to the ongoing development and refinement of its quantitative models, synthesizing insights from academic research with real-world investment experience. The result is a stock selection process that is systematic, free from behavioral bias, and consistently replicable across market cycles.
Deep local market knowledge - SCBAM’s team brings extensive experience in the Thai equity market, augmented by a technology-enhanced investment process that enables them to read market dynamics and capture signals that conventional models may fail to detect.
A disciplined, long-term investment culture - The team adheres to its investment process with unwavering conviction, undeterred by short-term market volatility. Delivering sustainable, long-term returns to unitholders remains the team’s guiding north star.’'
- What are some key risks to monitor in 2026 and what’s your strategy?
The Thai equity market rallied 17.68% from the start of the year through 23 February 2026, supported by sustained foreign fund inflows — particularly following a decisive election outcome. While Thailand’s economic landscape in 2026 faces a regime shift amid slowing GDP growth and a downward interest rate cycle, we believe value stocks are well-positioned to outperform growth stocks this year, underpinned by policy continuity, attractive dividend yields, and fading momentum in growth names.
Best Thailand Mid/Long-Term Bond Fund
Krungsri Enhanced Active Fixed Income
Krungsri Asset Management Co., Ltd.
- What do you think contributed to the fund’s strong peer-relative performance in 2025?
Our investment philosophy is grounded in the conviction that the Thai bond market is not entirely efficient, and that mispriced or underappreciated growth creates opportunities for excess returns. Accordingly, we employ a disciplined active management approach as a key competitive advantage, seeking to capitalize on relative value dislocations and evolving macroeconomic conditions rather than relying on passive exposure.
Over the past year, we have strategically positioned our portfolios to benefit from the global interest rate easing cycle, amidst elevated uncertainty surrounding U.S. trade policy. At the same time, Thailand continues to face structural economic headwinds, compounded by lingering political uncertainty, both of which have contributed to a less predictable domestic monetary policy. Against this backdrop, we have further strengthened our top-down and bottom-up analytical frameworks. This integrated approach enables us to actively recalibrate portfolios in response to shifting global and domestic conditions, with a clear objective of optimizing risk-adjusted returns.
From a duration management perspective, we have tactically utilized periods of heightened market volatility to adjust duration exposure and capture short-term relative value opportunities. These active duration strategies have contributed meaningfully to performance throughout the rate-cutting cycle.
- What are the strengths of your investment team that have contributed to this fund’s success?
At KSAM, our investment process is founded on a collaborative, team-based structure designed to harness the full depth of expertise from all team members. We believe that fostering diversity of perspectives and encouraging rigorous internal debate led to more thoroughly vetted assumptions and more resilient investment conclusions. Strategic positioning is therefore established on a consensus basis, forming a framework that guides portfolio construction across mandates.
- What are the risks that are top of mind for you in 2026 and how is the portfolio positioned to mitigate these risks?
We anticipate that 2026 will present continued challenges for fixed income markets, characterized by elevated volatility and persistent uncertainty across both global and domestic landscapes.
Globally, yield curve steepening across developed markets is expected to be a central theme in 2026. Within this environment, we intend to actively manage curve exposure, seeking to transform potential risks into tactical trading opportunities while recalibrating portfolios to capitalize on short-term dislocations and volatility.
Best Thailand Short-Term Bond Fund
Eastspring Aggregate Bond RMF
Eastspring Asset Management (Thailand) Company Limited
- What do you think contributed to the fund’s strong peer-relative performance in 2025?
We believe key drivers in 2025 are the interest cuts which boosted bond prices globally and the strong inflows into Asian bonds. Interest rate differential for hedged return in THB also contributed to total fund return. Our credit selection also improved our return with lower volatility.
- What are the strengths of your investment team that have contributed to this fund’s success?
We have a strong dedicated team that analyzes company financials, monitor credit ratings and detect early warning signs. The most important thing is our trading and execution team that specializes in investment grade corporate bonds and manages liquidity to avoid market impacts. In addition, strong collaboration with Eastspring investment teams across Asia, together with disciplined investment process enhances our access to offshore bonds and allows us to consistently deliver strong returns while managing volatility.
- What advice would you give to investors who are interested in short-term bond funds for retirement investing?
These funds are typically low risk and tax-efficient but they still require the right expectation and selection. Investors should look at credit quality by checking average credit rating and corporate bond exposure, as well as checking for return consistency, not just absolute return. For short-term bond funds, return consistency matters more than high absolute return. Finally, investors should also consider interest rate cycle as short-term bonds perform differently depending on interest rate cycle.
