CORRECTED-TEXT-Fitch affirms SCB Asset Management at 'M2+(tha)'
(To remove the RIC SCB.BK which was wrongly inserted beside text) (The following statement was released by the rating agency)
May 25 - Fitch Ratings (Thailand) has affirmed Thailand-based SCB Asset Management Co., Ltd.'s (SCBAM) National Asset Manager Rating at 'M2+(tha)'.
The affirmation recognises the company's established history of fund management, its strong domestic market position and the strength of support from its single shareholder - Siam Commercial Bank Plc (SCB, 'AA(tha)'/Stable/'F1+(tha)'). SCBAM benefits from its parent's distribution capacity, and extensive resources in risk management, compliance and IT.
The rating also reflects SCBAM's experienced senior management and investment staff despite the departure of co-Chief Investment Officer (co-CIO) for equity investment management. The rating is further supported by the stability of its fixed income investment process and by the fact that its asset allocation department is establishing a track record of positive performance. Despite a delay, its IT upgrade project of middle-to-back office functions is now mostly completed and has resulted in a higher level of automation in updating portfolio holdings and calculation of net asset value.
The main challenges facing SCBAM are growing its market share and assets under management (AuM) amid intensifying competition. There is also scope for stabilising staff turnover in equity investment management and improving the performance of equity funds. Other challenges include continued upgrade of the IT platform without delay or operational disruption.
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