MBKET prepares to launch infrastructure funds
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Maybank Kim Eng Securities (Thailand) (MBKET) plans to provide private wealth-management services and will soon launch infrastructure and property funds targeting investors who seek relatively stable returns and low risks, chief executive officer Montree
The firm plans to act as lead underwriter of shares in a fund to finance electricity-generating infrastructure, he said.
His statement suggested that the Electricity Generating Authority of Thailand and the Provincial Electricity Authority want to raise money for this purpose.
The fund, which would be worth about Bt10 billion, should attract investors who are worried about the current volatility in the stock market and low interest rates, Montree said.
Boonporn Boriboonsongsilp, CEO of retail business, said MBKET started to promote its private wealth-management business at the end of last year, and launched it recently when staff readiness was achieved.
Starting in the fourth quarter this year, MBKET will offer stock-trading services in four key overseas markets: Hong Kong, Singapore, Malaysia and the United States (Nasdaq and the New York Stock Exchange), she said.
In the next phase, the service will be expanded to more that 10 markets, she said.
It has become much easier for Thais to invest abroad now that the Bank of Thailand has allowed them to invest up to US$20 million (Bt628 million) per individual, in amounts of $500,000.
Meanwhile, Andrew Stotz, managing director for international business and market strategist at MBKET, said the three most attractive markets were China, South Korea and Thailand, in that order.
He said there was no bubble in the Chinese equity market after a fall in share prices, but there might be a bubble in property and other sectors, he said.
He is positive about the Thai market, but said it had a tendency to be volatile.
From his study, star stocks tended to maintain above-average profitability over a seven-year period. Profitability usually fell from a peak in three or four years, but later remained above the average, Stotz said. “Dog stocks” (under-performing companies) tended to remain “dogs”, and not turn around.
He said investors should not believe stories about dog stocks’ ability to turn around unless there is a substantial change of management and ownership.
