TMBAM plans to list funds
TMB Asset Management (TMBAM) will launch an initial public offering of three asset-allocation funds worth Bt2 billion each. The funds will mainly invest in stocks and bonds.
Somjin Sornpaisarn, president of TMBAM, said yesterday that the company had designed the funds to serve the needs of investors. While equities give higher returns than the deposit and bond markets, investors must be concerned about market volatility as well.
Fund managers should help investors allocate assets within suitable periods to diversify risks while enjoying satisfactory returns, he said.
The TMBAM’s funds aim to meet the demand for equity and fixed incomes as it sees a clear resolution to the euro zone’s debt crisis, improvements in the US economy and greater fund flows, with investments shifting from commodities towards emerging markets, including Asia.
The bright outlook of the Stock Exchange of Thailand, lower interest rates and the reduction of commission fees are attracting investors to the equity markets, he said.
The first of the three funds is the TMB Asset Allocation Short Term Fund, which will invest 15 per cent in equities. The annualised return is expected at 5-6 per cent for two to three years.
The second fund is the TMB Asset Allocation Medium Term Fund, which will invest 30 per cent in equities; the annualised return is expected at 7-8 per cent for three to five years.
The third fund is the TMB Asset Allocation Long Term Fund, which will invest more than 60 per cent in equities for more than five years. The return is expected to be higher than the first two funds.
The IPO will be opened on Wednesday, March 28, and close on April 5.
Somjin said the funds would invest in the local equity market rather than overseas, adding that the strategy was passive investment in the SET 50. The investment in fixed-income products will by actively managed by considering the fixed-income period, portfolio duration, credit risk, market risk and liquidity risk.
TMBAM believes the combined worth of the three funds could increase to Bt10 billion in the near future.
The company predicts that assets under management this year could climb to Bt140 billion from Bt128 billion as of the end of 2011.
