The new product, also known as the K-Art fund, is a feeder fund structure, channeling at least 80% of its assets into Blackrock’s master fund, the BSF Americas Diversified Equity Absolute Return Fund, according to a report in the Bangkok Post.
The fund is offered to high net worth individuals, with an initial investment of THB 550,000 ($16,000). The initial subscription, under way until 4 October, is capped at THB 5bn ($145m).
The fund will target an average return of 5% a year, while aiming to deliver positive returns in all market conditions. Its long-short strategy seeks to mitigate all risks, according to Damien Mooney, managing director and head of retail business at Blackrock for Asia Pacific, who was quoted in the report.
The master fund invests at least 70% of its assets in shares of companies listed in the US, Canada and Latin America, according to the fund’s factsheet. It also invests in equity-related securities, including derivatives, as well as fixed income and money market instruments.
The strategy uses big data and machine learning to analyse and forecast trends in the market, Mooney said, using publicly available data in the markets in which it invests.
Kasikorn has a private banking growth target of 15% per annum and now has more than 10,000 customers with THB 750bn in AUM, according to the bank.
In 2012, KBank partnered with Blackrock to launch the K Global Allocation RMF Fund, which feeds into the BGF Global Allocation Fund. Its NAV is THB 928m, according to the firm’s website.
Blackrock and KBank were not available for comment.
