INVESTING THANACHART FUND MANAGEMENT

Investors turning to low-risk funds

NUNTAWUN POLKUAMDEE

Thanachart Fund Management aims to boost its asset portfolio from 15% to 20%, primarily through growth in its short-term money market funds as investors seek low-risk options amidst economic uncertainty. The company, a unit of Thanachart Bank, had 58 billion baht in assets under management at the end of March, up from 43 billion at the end of 2006.

Boonchai Kiattanavith, the Thanachart Fund managing director, said the firm expects its asset portfolio to rise from 60 to 70 billion baht by the end of the year with support from parent Thanachart Bank.

Money market funds are the most popular investment, he said, due to political, economic and interest rate uncertainties.

But Thanachart Fund plans to introduce two new equity funds this year, with the first to be offered on the market within the next few months.

''Equity funds remain interesting given that the price-to-earnings ratio for the Thai market is the lowest in the region,'' Mr Boonchai said, adding that the company also plans to launch two new foreign investment funds and is considering issuing a new derivative fund.

Equity funds and equity FIFs were good investment options for medium- to long-term investments, he said, adding that Thanachart was focusing on firms with solid fundamentals and dividend track records.

But money market funds continue to dominate the overall market at over 70% of total net assets under management across all fund managers.

Thanachart's newest FIF is called Thanachart Value exUS Fund, or T-Value exUS. The fund, which will hold its initial public offering from April 12 to 30, will invest in value stocks in equity markets across the world, excluding the US.The fund is managed by the international fund management firm AllianceBernstein L.P. Mr Boonchai said the five-year return for the fund was over 20%, with the three-year return 26%.

Marc Faber, a prominent international fund manager, yesterday told investors at a briefing on the new FIF that he expected the US economy to continue to slow due to the ballooning trade deficit.

Dr Faber added that he anticipated growth in Asian markets, particularly the retail and property sectors.

Bangkok Post
Tuesday April 03, 2007