KTAM aims for a return to top three

After letting other bank-backed competitors enjoy huge growth by using debt tool funds, Krung Thai Asset Management (KTAM) aims to climb back into the top three in the mutual fund sector this year.

The asset-management giant expects to raise the size of its first money-market fund to Bt50 billion this year. The fund is similar to a bank deposit account, as investors can order to buy or redeem the unit trusts every day.

Transactions will be T+1 (transaction day plus one), but the return provided by the fund is more than 4 per cent, compared to the average 75-satang interest for every Bt100 lodged in a bank savings account.

"Our competitors that have banks to support their business all have this type of fund. They have grown very fast . It's a good step for beginners, whose saving haven is only banks, to shift to mutual funds," KTAM president and CEO Sripop Sarasas said yesterday.

KTAM will launch 18 fixed-income funds this year. Amid the trend of declining interest rates, the plan to launch more fixed-income funds is in line with major shareholder Krung Thai Bank's plan to attract its savings customers, said Ariyawich Wk-Ularnpun, senior executive vice president and chief operations officer.

KTAM projects increasing its assets under management through these funds by another Bt70 billion.

Although the Bank of Thailand's 30-per-cent reserve requirement measure seemingly affects property funds, Sripop said the company would launch five to seven such funds this year.

"Our funds are not too big and we aim at retail investors. Therefore, it shouldn't be a problem," he said.

The firm also plans to launch a foreign investment fund, which would provide a capital guarantee and invest in bonds in emerging markets.

According to the plan, the firm expects to climb back into the top three from its current fifth-placed ranking. It ranked second in 2004, slipped to fourth in 2005 before dropping to sixth last year. Its assets under management now total Bt100.42 billion.

KTAM will maintain its top position in provident funds, aiming to sign three deals with state agencies.

Prapa Puranachote, senior executive vice president, said the company would penetrate small and medium-sized enterprises this year, but these firms have asked it to slow down due to the unfavourable market. It expects to manage Bt81.04 billion this year, compared to Bt69.3 billion last year.

KTAM also targets to increase its assets under management in private funds from Bt643 million last year to Bt3.29 billion this year.

Piyarat Setthasiriphaiboon

Thailand News
The Nation Thailand
Friday January 26, 2007