Mr. Somchai Boonnamsiri, Chief Executive Officer of Krung Thai Asset Management Pcl., reveals that the company is going to launch two funds this week. First, The Krung Thai Thanasup B80 (KTSUPB80), offers from today to 29th April 2013. The fund‘s duration is six months with the fund size of seven billion Baht, this fund will invest in both domestic and foreign fixed income notes. The proportion of 70% of the fund’s NAV will be allocated to the foreign fixed income such as the term deposit of Bank of China, Union National Bank, and MTN issued by Itau Unibanco S.A. and Banco BTG Pactual S.A. The remaining will be allocated to the debenture/bill of exchange of the local financial institutions and corporations. The expected yield to investor is approximately 3.00% per annum.
Second, the company is offering The Krung Thai Capital Protection Fixed 3M Fund2 (KTFIX3M2), the roll over fund, from now to 26th April 2013. The fund’s duration is three months. It solely invests in domestic fixed income notes with about 57% of the fund’s NAV holding government bond, and the remaining investing in fixed deposit of Thanachart Bank, TISCO Bank, and Government Savings Bank. The expected yield to investor is approximately 2.55% per annum.
With regard to Thai fixed income market last week, the BOT bonds’ yield remained fairly stable. The yields for series 1-month to 1-year, were moving between 0 to +1 bps, while the bid rates ranged between 2.71 – 2.75%. There was no new factor affecting the market. The lower Govy yield was partly caused by the lower rate of return of the US Treasury, which decreased as a result of the fund flow shifted to low risk investments.
For the foreign exchange market last week, the Thai Baht was still on the upward trend, moving in band of 28.50 to 29.10 Baht/US Dollar. The Bank of Thailand mentioned that this fast strengthening Thai Baht mainly caused by the fund flow that came from the BOJ’s stimulus package plumping a lump sum of 7 trillions Yen into the market every month. In addition, the capital inflow that purchased the infrastructure fund, BTSGIF, also drove the Baht stronger.
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