BBLAM urges investors to diversify portfolios

Investors should consider increasing portfolio diversification as geopolitical tensions, natural disasters and economic vulnerabilities threaten to intensify market volatility in the final quarter of 2026, says Bualuang Fund Management (BBLAM).

Isara Ordeedolchest, head of investment research at BBLAM, said US bond yields are approaching the end of their upward cycle and warned that uncertainty across asset classes requires investment strategies less dependent on the direction of financial markets.

 The 10-year US Treasury yield is viewed as having peaked at around 5.3%. Yields above 5% are considered difficult to sustain over the longer term given nominal US GDP growth of around 5%, he said.

 BBLAM sees limited further downside risk for bonds over the next 6-12 months, with potential gains if yields decline. Investors may consider gradually accumulating fixed-income assets to diversify their portfolios.

However, the US economic outlook remains uneven. Investment in technology and artificial intelligence has driven growth, while the property sector, employment and wage growth are showing signs of slowing. This divergence could add to market uncertainty as investors assess the sustainability of economic growth, said Mr Isara.

 Geopolitical tensions and natural disasters are additional risks. The Middle East conflict is viewed as geographically contained, while tensions in Asia, including around Taiwan, are seen as having eased. Yet unpredictable geopolitical events, extreme weather and natural disasters could disrupt economic activity and trigger further market volatility, he noted.

 Against this backdrop, BBLAM advises investors to adjust portfolio allocations to changing conditions rather than rely on a single asset class. The firm also emphasises long-term wealth accumulation, particularly for retirement, rather than short-term trading.

Chief executive Bannarong Pichyakorn said the company wants to broaden access to investment strategies previously associated with wealth investors. Following the completion of the transfer of Bangkok Capital Asset Management’s (BCAP) asset management business on July 20, BBLAM’s assets under management increased to 1.02 trillion baht at the end of July.

The integration combines BBLAM’s retail distribution network with BCAP’s expertise in market-neutral and hedge fund strategies. More than 90% of BBLAM’s mutual fund business is distributed through Bangkok Bank.

BBLAM is launching two global multi-asset funds to meet different investment objectives, while cautiously exploring Bitcoin exchange-traded funds due to their high volatility.

Bualuang Global Diversified Income (B-GDI), a Level 5 foreign fund-of-funds, invests in equities and fixed-income securities to generate interest and dividend income. The fund offers automatic redemptions up to 12 times a year to provide recurring cash flow alongside portfolio growth.

Bualuang Global Absolute Return (B-GAR), also a Level 5 foreign fund-of-funds, invests in specialist absolute-return strategies combining quantitative models and discretionary management. Some underlying funds use long and short positions to reduce exposure to broad market movements. The fund aims to deliver positive returns across market conditions, with lower volatility than conventional equity funds, although returns are not guaranteed.