MONTHLY MARKET UPDATE - media.tmbbank.com€¦ · Monthly Market Update – August 2020 * This portfolio allocation will evolve depending on the market condition or other economic

MONTHLY MARKET UPDATE

มีที่ปร�กษาแนะนำให� ลงทุนยังไงก็ใช�คุณTMB Advisory ที่ปร�กษาส�วนตัวด�านการลงทุน

AUGUST 2020

Data as of 31/08/2020

The appetite for risk assets has remained strong over the summer lull and volatility has been decreasing.

The summer season has seen both the confirmation of existing themes and the emergence of new

ones that will likely drive economic and market trends in the coming months. We notice that the

decoupling between the real economy and financial markets has proved persistent. Another confirmed

trend is that the virus is not over (some EM, Europe, US see the daily number of covid cases

rebounding): the back-to-school test in September will be key. A sharp reacceleration of

the virus cycle would hit the financial markets, leading to mounting expectations of additional

support measures. On geopolitics, the US-China confrontation has taken a new twist recently in the

tech sphere. President Trump is likely to keep pressure high ahead of the elections. Finally, the

Presidential race is still very uncertain and a Democratic sweep would be a market mover, possibly

leading to higher volatility in the corporate sector. Overall, the outlook remains difficult to assess,

with asymmetric risks and any disappointment is a reason for caution, and so with tight valuations.

In these conditions, we keep a defensive stance on equities (and we keep our preference for credit

within risky assets), and within the asset class, we have a conservative view on DM equities while

we are more constructive on EM equities. In terms of style, quality growth stocks still offer interesting

features in the current environment, however valuations of some mega-caps and high-growth names

seem extreme, and rotation opportunities could arise in the value and cyclicals sectors. Markets are

being influenced by the news flow around fiscal and monetary interventions, which continues to drive

rates and spreads lower. We don't foresee any significant rise in bond yields as major Central Banks

should remain accommodative for a long period. In this context, we keep a rather neutral view on

duration, with a preference in US bonds versus other regions. On the credit side, we stay constructive

as companies remain under the umbrella of Central banks in the US and in the Euro area. We

continue to prefer IG to HY (which could suffer due to higher default rates and slowing top-line growth).

Nevertheless, in this context where credit spreads have already tightened significantly, a high

selectivity is due. Finally, we remain constructive on EM debt with a preference on Asian bonds.

Within fixed income part, we still prefer global bonds to Thai bonds

MARKET VIEWMARKET OVERVIEWLike July, August was another good month on equities. Risk sentiment improved supported

by the recovery as economies reopened and posted good activity data. Concerning Covid-19

trend, despite the virus kept on spreading globally, the pace of new Covid-19 cases in the

US slowed and the epidemic remained manageable in countries (especially Europe)

experiencing second wave contagion (no significant increase in hospitalizations). Finally,

news flow related to the development of a vaccine was rather positive. In this context, global

equities continued to rebound, MSCI World gaining 6.73%: Among developed markets, US

markets saw a stunning performance of FANG+ Index with a +21.2% increase (and now up

82.6% YTD). In term of style, as usual this year, growth stocks continued their strong run and

outperformed Value stocks, with the former up +9.4% against a gain of +3.3% for value.

Unlike July, Emerging markets underperformed developed equities, the MSCI EM

gaining only 2.24% (in USD terms). Performances were heterogeneous within EM: EM Asia

rebounded 3.24%, pulled up by Chinese equities (MSCI China +5.67% in USD thanks the

RMB strength, +1.82% vs USD), while LATAM dropped -6.20%. Thai market continued

to lag behind with a slight fall of 0.90% for the SET Index. Thai markets continue to suffer

from covid potential impact (especially on tourism), and from the current political unrest.

Though year for Thai equities (SET -14.6% YTD). Fixed income struggled in August as

investors rotated into riskier assets. Global Aggregate Index Hedged USD lost -0.72%. On

credit markets, spreads continued to tighten, but did not compensate the increase in

interest rates. As a result, Global corporate bonds lost -0.72% over the month. On Thai

fixed income market, in line with the global trend, government bond yields ended the month

with a slight upwards move, while credit spreads continued to tighten. Overall, the Thai bond

composite index ended slightly lower (-0,03%)

TABLE OF CONTENT

RISK AVERSE PORTFOLIO

CONSERVATIVE PORTFOLIO

BALANCED PORTFOLIO

ADVANCED PORTFOLIO

AGGRESSIVE PORTFOLIO

01

03

05

07

09

PLEASE SELECT THE ITEMS, FOR FURTHER INFORMATION

MARKET OVERVIEW AND MARKET VIEW (Data as of 31 August 2020)

PORTFOLIO OVERVIEW – AUGUST 2020

01

Table of content

This summary is a part of the prospectus which only sets out information relating to the policy, return, risks and conditions of the fund. Investors must study the information in details from the full prospectus before making an investment decision. Full prospectus can be requested from a selling agent and the Management Company. Investors may also study information from the prospectus that was submitted by the Management Company to The Securities and Exchange Commission (SEC) on SEC’s website. If you have any questions, please ask your investment advisor before buying investment units. Investors should make investment only when they see that the fund is suitable to their objectives and that they can accept potential risks from such investment.

For customer’srisk level 1RISK AVERSE PORTFOLIO

Monthly Performances and Risks statistics

The portfolio outperformed its benchmark, delivering +0.08% vs -0.16%. This month, the allocation to TMB Global Income who likely benefit from credit exposure and was less penalized by rising rates, contributed the most to the performance.

Maximum drawdownWorst monthLowest returnBest monthHighest return

PortfolioBenchmarkSpread

3 months0.83%0.38%0.45%

1 month0.08%

-0.16%0.24%

6 months-1.12%0.80%

-1.93%

Portfolio volatilityBenchmark volatility

3 years1.29%0.91%

1 year2.13%1.34%

5 years--

YTD-0.32%1.97%

-2.28%

S.I.(% p.a.)1.81%2.51%

-0.70%

No changes.


20173.01%2.25%0.76%

20180.68%1.28%

-0.61%

20193.31%3.72%

-0.41%

2016---

2015---

Portfolio commentary

Performance analytics

Risk analysis (rolling)

Strategy

Performance Evolution (Base 100)*

Calendar year performance

Past performance (%)

Asset Allocation*

FIF Fixed Income

Fixed Income

28.36%

% Investment Portion

71.64%

% weight28.36%11.14%

8.13%9.09%

71.64%9.94%

17.97%16.90%16.91%

9.93%

Bloomberg

TMBGLBF TB TMBGLIN TBUNGLDBN TB

KASKTPF TBKFIXINC TBKFAFIXI TBKTSFIPA TBTMBTRMF TB

ISIN

TH2560010005 TH7232010002TH8385010005

TH2733010007TH1145010001TH7481010000TH7323010002TH1092010004

TMB GLOBAL BOND FUNDTMB GLOBAL INCOME FUNDUNITED GLOBAL DYNAMIC BOND-N

K CASH MANAGEMENTK FIXED INCOME FUNDKRUNGSRI ACTIVE FIXED INCOME AKTAM FIXED INCOME PLUS ATMB TREASURY MONEY

FIF Fixed Income

Fixed Income

Portfolio composition – August 2020

Monthly Market Update – August 2020

* This portfolio allocation will evolve depending on the market condition or other economic factors.

Portfolio Benchmark

28.36%

71.64%

-3.15%Mar-20-2.52%Jul-200.57%

Reference allocation: 100% Fixed IncomeThis profile is designed for investors having a low risk tolerance.

Benchmark :Composite Index **

Sub-fund launch date: 30/12/2016

Investment Objective

** Index composition :

48% THAI BOND DEALING CENTER GOVT BOND GRP 1 TOTAL RETURN INDEX + 8% THAI BOND DEALING CENTER CORPORATE BOND GRP 1 TOTAL RETURN INDEX (BBB UP) + 24% THAI BOND DEALING CENTER SHORT TERM GOVT BOND TOTAL RETURN INDEX + 20% BLOOMBERG BARCLAYS GLOBAL AGGREGATE HEDGED

Portfolio Management Fee :

Portfolio Management Fee (Exclude vat) Not Exceeding 1.5% P.A. of AUM (Actual Fee No Charge)

As of 31 August 2020

Inception to date

** The summation of portfolio return and the spread may not equal to the benchmark return because of the rounding effect

02

03

Table of content


For customer’srisk level 2CONSERVATIVE PORTFOLIO


TMB CHINA OPPORTUNITY FUND TMB EASTSPRING ASIA ACTIVE EQUITYTMB EASTSPRING GLOBAL CORE EQTMB GLOBAL QUALITY GROWTH FUND

TMB ASIAN BOND FUNDTMB GLOBAL BOND FUNDTMB GLOBAL INCOME FUNDUNITED GLOBAL DYNAMIC BOND-N

K STAR EQUITY FUND-A ACCTHANACHART LOW BETA

K CASH MANAGEMENTK FIXED INCOME FUNDKRUNGSRI ACTIVE FIXED INCOME AKTAM FIXED INCOME PLUS A

Asset Allocation*

FIF EquitiesFIF Fixed Income

11.20%


38.59%EquitiesFixed Income

5.98%44.24%

FIF Equities

FIF Fixed Income

Equities

Fixed Income

% weight11.20%

2.85%2.87%2.71%2.77%

38.59%4.06%

16.01%10.04%

8.48%5.98%2.78%3.20%

44.24%9.82%

11.83%11.78%10.81%

Bloomberg

TMBCOPF TBTMBAGLF TBTMBESGC TBTMBGQGT TB

TMBASD2 TBTMBGLBF TBTMBGLIN TBUNGLDBN TB

KSTAACC TBTISCOHD TB

KASKTPF TBKFIXINC TBKFAFIXI TBKTSFIPA TB

ISIN

TH5969010005TH5820010004TH9296010001TH6351010009

TH7628010004 TH2560010005TH7232010002TH8385010005

TH1557010002TH3221010004

TH2733010007TH1145010001TH7481010000TH7323010002


44.24% 38.59%

11.20%

5.98%



The portfolio outperformed its benchmark delivering +0.56% vs +0.17%. This month the underweight to Thai equity contributed to the performance. On the fund level, TMB Global Income were the key contributor.



3 months3.54%1.71%1.83%

1 month0.56%0.17%0.39%

6 months1.49%2.34%

-0.86%


3 years4.22%3.42%

1 year6.71%5.33%

5 years--

YTD-0.07%1.74%

-1.81%

S.I.(% p.a.)2.91%3.15%

-0.24%




Strategy




Portfolio Benchmark

-9.95%Mar-20-5.51%Apr-202.56%

Reference allocation: 80%Fixed Income, 20% Equities This profile is designed fo cautious investors having a low to medium risk tolerance and looking for a large diversification in terms of asset classes.





30% THAI BOND DEALING CENTER GOVT BOND GRP 1 TOTAL RETURN INDEX +5% MSCI AC ASIA EX JAPAN+ 10% BANGKOK SET+15% THAI BOND DEALING CENTER SHORT TERM GOVT BOND TOTAL RETURN INDEX +5% MSCI WORLD +5% THAI BOND DEALING CENTER CORPORATE BOND GRP 1 TOTAL RETURN INDEX (BBB UP) +30% BLOOMBERG BARCLAYS GLOBAL AGGREGATE HEDGED

Portfolio Management Fee : Portfolio Management Fee (Exclude vat) Not Exceeding 1.5% P.A. of AUM (Actual Fee 0.5% P.A. of AUM)


20176.94%5.51%1.43%

2018 -2.05%-0.99%-1.06%

20196.15%5.42%0.72%

2016---

2015---

Inception to date

No changes.



04

05

For customer’srisk level 3BALANCED PORTFOLIO


Table of content


TMB CHINA OPPORTUNITY FUND TMB EASTSPRING ASIA ACTIVE EQUITYTMB EASTSPRING GLOBAL CORE EQUITYTMB GLOBAL QUALITY GROWTH FUND

TMB ASIAN BOND FUNDTMB GLOBAL BOND FUNDTMB GLOBAL INCOME FUNDUNITED GLOBAL DYNAMIC BOND-N

K STAR EQUITY FUND-A ACCTHANACHART LOW BETATISCO STRATEGIC INCOME

K CASH MANAGEMENTK FIXED INCOME FUNDKRUNGSRI ACTIVE FIXED INCOME AKTAM FIXED INCOME PLUS A

TMB GOLD SINGAPORE FUND


3 months5.62%2.71%2.91%

1 month0.85%0.56%0.29%

6 months3.85%3.74%0.11%

YTD-1.43%-0.78%-0.65%

S.I.(% p.a.)3.33%3.03%0.30%




Portfolio Benchmark

% weight20.14%

6.80%4.57%2.15%6.62%

28.92%4.04%

10.94%7.99%5.95%

23.16%13.82%

6.36%2.98%24.44

4.88%7.35%7.32%4.88%3.35%3.35%

Bloomberg

TMBCOPF TBTMBAGLF TBTMBESGC TBTMBGQGT TB

TMBASD2 TBTMBGLBF TBTMBGLIN TBUNGLDBN TB

KSTAACC TBTLOBETA TBTISTRAT TB

KASKTPF TBKFIXINC TBKFAFIXI TBKTSFIPA TB

TMBGOLD TB

ISIN

TH5969010005TH5820010004TH9296010001TH6351010009

TH7628010004TH2560010005TH7232010002TH8385010005

TH1557010002TH3054010006TH1127010003

TH2733010007TH1145010001TH7481010000TH7323010002

TH3190010001

FIF Equities

FIF Fixed Income

Equities

Fixed Income

Others


Asset Allocation*


Reference allocation:50%Fixed Income, 50% Equities This profile is designed for investors having an average risk tolerance and targeting medium and long-term capital appreciation.





10% MSCI AC ASIA EX JAPAN +30% BANGKOK SET +18% THAI BOND DEALING CENTER GOVT BOND GRP 1 TOTAL RETURN INDEX +20% BLOOMBERG BARCLAYS GLOBAL AGGREGATE HEDGED +10% MSCI WORLD +3% THAI BOND DEALING CENTER CORPORATE BOND GRP 1 TOTAL RETURN INDEX (BBB UP) +9% THAI BOND DEALING CENTER SHORT TERM GOVT BOND TOTAL RETURN INDEX


Portfolio Management Fee (Exclude vat) Not Exceeding 1.5% P.A. of AUM (Actual Fee 0.5% P.A. of AUM)


201711.80%10.18%

1.62%

2018 -5.21%-4.04%-1.16%

20197.98%6.35%1.62%

2016---

2015---


The portfolio outperformed its benchmark delivering +0.85% vs +0.56%. This month, the underweight Thai equity contributed the most to the performance. On the fund level, TMB Global Income, TMB China Opportunity and Tisco Strategic were the key contributors

Maximum drawdowWorst monthLowest returnBest monthHighest return


3 years8.21%7.85%

1 year12.55%12.00%

5 years--




Strategy

-18.82%Mar-20-8.91%Apr-205.81%

Inception to date

No changes.


20.14%


28.92%23.16%24.44%

Others 3.35%

FIF EquitiesFIF Fixed IncomeEquitiesFixed Income

20.14%

24.44%

23.16%

28.92%

3.35%


06

07

Table of content


For customer’srisk level 4ADVANCED PORTFOLIO


TMB CHINA OPPORTUNITY FUND TMB EASTSPRING ASIA ACTIVE EQUITYTMB EASTSPRING GLOBAL CORE EQUITYTMB GLOBAL QUALITY GROWTH FUNDUNITED GLOBAL HEALTHCARE FUND

TMB ASIAN BOND FUNDTMB GLOBAL BOND FUNDTMB GLOBAL INCOME FUND

K STAR EQUITY FUND-A ACCTHANACHART LOW BETATISCO HIGH DIVIDEND EQUITY FUNDTISCO STRATEGIC INCOME

K FIXED INCOME FUNDKRUNGSRI ACTIVE FIXED INCOME A

TMB GOLD SINGAPORE FUND

Asset Allocation*

% weight30.88%

9.00%7.93%3.20%7.66%3.09%

22.78%4.01%

12.83%5.94%

31.24%15.54%

8.11%3.65%3.94%

10.68%5.84%4.84%4.43%4.43%

Bloomberg

TMBCOPF TBTMBAGLF TBTMBESGC TBTMBGQGT TBUOBUGHF TB

TMBASD2 TBTMBGLBF TBTMBGLIN TB

KSTAACC TBTLOBETA TBTISCOHD TBTISTRAT TB

KFIXINC TBKFAFIXI TB

TMBGOLD TB

ISIN

TH5969010005TH5820010004TH9296010001TH6351010009TH5842010008

TH7628010004TH2560010005TH7232010002

TH1557010002TH3054010006TH3221010004TH1127010003

TH1145010001TH7481010000

TH3190010001

FIF Equities

FIF Fixed Income

Equities

Fixed Income

Others


30.88%


22.78%31.24%10.68%

Others 4.43%

FIF EquitiesFIF Fixed IncomeEquitiesFixed Income



3 months7.83%3.96%3.87%

1 month1.21%1.00%0.20%

6 months5.86%4.94%0.92%

YTD-2.09%-1.78%-0.31%

S.I.(% p.a.)3.49%3.18%0.31%




Portfolio BenchmarkReference allocation: 30% Fixed Income,70% Equities Thisprofileis designed for investors having a medium to high risk tolerance and prepared to bear a potential loss.





40% BANGKOK SET +15% MSCI AC ASIA EX JAPAN +9% THAI BOND DEALING CENTER GOVT BOND GRP 1 TOTAL RETURN INDEX +15% BLOOMBERG BARCLAYS GLOBAL AGGREGATE HEDGED +4% THAI BOND DEALING CENTER SHORT TERM GOVT BOND TOTAL RETURN INDEX +15% MSCI WORLD +2% THAI BOND DEALING CENTER CORPORATE BOND GRP 1 TOTAL RETURN INDEX (BBB UP)




201714.90%13.50%

1.40%

2018-7.97%-6.22%-1.74%

20199.56%7.31%2.25%

2016---

2015---

30.88%

10.68%

31.24%

22.78%

4.43%


The portfolio outperformed its benchmark delivering +1.21% vs +1.00%. This month, the underweight Thai equity contributed the most to the performance. On the fund level, TMB Global Income, TMB China Opportunity and Tisco Strategic were the key contributors. On the other side, Thanachart Low beta were the main detractor to the performance



3 years11.23%10.83%

1 year17.06%16.42%

5 years--




Strategy

-26.04%Mar-20

-11.25%Apr-208.01%

Inception to date

No Changes ** The summation of portfolio return and the spread may not equal to the benchmark return because of the rounding effect


08

09

AGGRESSIVE PORTFOLIOMonthly Performances and Risks statistics

For customer’srisk level 5

Table of content








50% BANGKOK SET + 25% MSCI AC ASIA EX JAPAN + 25% MSCI WORLD




3 months11.15%

6.68%4.47%

1 month1.81%2.01%

-0.19%

6 months8.56%7.22%1.34%

YTD-3.24%-2.47%-0.77%

S.I. (% p.a.)3.47%3.57%

-0.10%




Portfolio Benchmark

Asset Allocation*


201719.68%18.67%

1.01%

2018-12.39%

-9.62%-2.76%

201911.73%

8.73%3.00%

2016---

2015---

FIF EquitiesFIF Fixed Income

50.56%


4.88%Equities 39.08%Others 5.48%

KTAM ASEAN EQ-ATMB CHINA OPPORTUNITY FUND TMB EASTSPRING ASIA ACTIVE EQUITYTMB EASTSPRING GLOBAL CORE EQUITYTMB GLOBAL QUALITY GROWTH FUNDUNITED GLOBAL HEALTHCARE FUND

TMB GLOBAL BOND FUND

K STAR EQUITY FUND-A ACCTHANACHART LOW BETATISCO HIGH DIVIDEND EQUITY FUNDTISCO STRATEGIC INCOME

TMB GOLD SINGAPORE

% weight50.56%

3.76%11.13%12.33%

6.34%11.91%

5.10%4.88%4.88%

39.08%17.18%10.70%

6.35%4.88%5.48%5.48%

Bloomberg

KTASEAN TBTMBCOPF TBTMBAGLF TBTMBESGC TBTMBGQGT TBUOBUGHF TB

TMBGLBF TB

KSTAACC TBTLOBETA TBTISCOHD TBTISTRAT TB

TMBGOLD TB

ISIN

TH6401010009TH5969010005TH5820010004TH9296010001TH6351010009TH5842010008

TH2560010005

TH1557010002TH3054010006TH3221010004TH1127010003

TH3190010001

FIF Equities

FIF Fixed Income

Equities

Others

The portfolio outperformed its benchmark delivering +1.81% vs +2.01%. This month, the underweight in Thai Equity contributed the most to performance. On the fund level, TMB China Opportunity and Tisco Strategic were the key contributors. On the other side, United Global Healthcare were the main detractor to the performance.

Maximum drawdown

Worst month

Lowest return

Best month

Highest return

Portfolio volatility

Benchmark volatility

3 years

15.62%

15.26%

1 year

23.45%

22.80%

5 years

-

-

No changes




Strategy

-36.53%

Mar-20

-14.83%

Apr-20

11.26%

Inception to dateReference allocation: 100% EquitiesThis profile is designed for investors having a high risk tolerance and prepared to bear strong market volatility.



4.88%

39.08%

50.56%

5.48%


10

Table of content

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Documents

MONTHLY MARKET UPDATE - media.tmbbank.com€¦ · Monthly Market Update – August 2020 * This portfolio allocation will evolve depending on the market condition or other economic