Asia News

INVESTING

Funds foresee zero growth amid gloomy sentiment

NUNTAWUN POLKUAMDEE

Mutual funds are expected to post flat growth for the year, given the sharp fall in sentiment in the second half, according to Voravan Tarapoom, president of the Association of Investment Management Companies (AIMC).

Assets under management by the industry had fallen 2% to 1.58 trillion baht by the end of September.

Equity funds posted a 10.73% increase in net asset value from the end of 2007 to 146.24 billion baht, while fixed-income funds rose 2.47% to 974.33 billion.

However, mixed funds fell 19.76% to 196.97 billion baht over the same period, while other fund classes posted a 7.62% fall for the first three quarters to 261 billion. Retirement mutual funds and long-term equity funds also sank, by 7.82% to 80.59 billion baht.

Although foreign investment funds posted a huge 70.54% increase to 356.89 billion, Mrs Voravan - who is also head of BBL Asset Management - said foreign investment funds were likely to post declines due to the US economic crisis and a steep plunge in market sentiment across the world.

On the other hand, LTFs and RMFs should benefit from government plans to raise tax deductions for contributions made in the fourth quarter.

SCB Asset Management remains the leader with 279.26 billion baht in assets under management as of Sept 26, albeit down 7.81% from the end of 2007.

Kasikorn Asset Management ranked second with 245.44 billion baht, up 2.96% over the first three quarters, while BBL Asset management posted a 2.35% gain to 149.13 billion.

As a whole, the industry saw net asset values fall 32.35 billion baht in the first nine months, with SCBAM posting a 23.65 billion baht decline, Aberdeen Asset Management down 13.59 billion and TMB Asset Management slipping 11.06 billion.

Thanachart Fund Management bucked the trend with inflows expanding its portfolio by 13.59 billion baht in the first nine months, ING Funds showed a 7.35 billion gain and Kasikorn Asset secured 7.05 billion.

News Topics Related Posts :

• HK government’s market action takes effect (Friday, November 14, 2008)
• China retail sales growth slows to 22% in Oct. (Thursday, November 13, 2008)
• Crackdown on environmental mismanagement sees 368 officials convicted (Thursday, November 13, 2008)
• RETAILING / Office Depot aims at non-US markets (Wednesday, November 12, 2008)
• Suchart downplays need to cut taxes at this time (Wednesday, November 12, 2008)
• Central bank raises forex trading band to +/-3% (Tuesday, November 11, 2008)
• Somkid urges govt to follow China’s economic policy (Tuesday, November 11, 2008)
• AGRICULTURE / Singapore trader proposes big corn buy from state stocks (Tuesday, November 11, 2008)
• Preuksa and Prinsiri report healthy results (Tuesday, November 11, 2008)
• Jasmine goes full throttle with broadband effort (Tuesday, November 11, 2008)
• ELECTRONICS / Cal-Comp seeks loans in China (Tuesday, November 11, 2008)
• DEEP SOUTH / Army given B8bn to fight insurgency (Tuesday, November 11, 2008)
• In Media / POST TODAY EDITORIAL (Tuesday, November 11, 2008)
• Govt transfers funds to village SMLs (Tuesday, November 11, 2008)
• Hong Kong stocks close 3.52% higher on mainland’s stimulus package (Monday, November 10, 2008)
• Cheap oil only a temporary fix (Monday, November 10, 2008)
• Builders aim for B10.5bn (Monday, November 10, 2008)
• ASSET MANAGEMENT / BAM chief doubts fire-sale climate of 1997 will return (Monday, November 10, 2008)
• Packed rice prices to drop once stocks sold (Monday, November 10, 2008)
• TG cuts fuel fees again (Monday, November 10, 2008)

Tags: Aberdeen Asset Management, Asia Focus, Asia News, Asia Today, Asset Value, Asset Values, Assets Under Management, Baht, Bangkok Daily, Bangkok Daily News, Bangkok News, Daily News, Daily News Thailand, Economic Crisis, Equity Funds, First Nine Months, Foreign Investment, Ing Funds, Investment Funds, Investment Management Companies, Kasikorn, Market Sentiment, Net Asset Value, News Asia, News Bangkok, News In Thailand, News Of Thailand, News Update, Scbam, Siam Daily, Siam Daily News, Siam News, Tax Deductions, Term Equity, Thai Daily, Thai Daily News, Thai News, Thailand Daily, Thailand Daily News, Thailand News, Thailand News Online, Thailand News Today, Thailand News Update, Thailand Post, Thailand Today, Thailand Update, Thailand’S News, Three Quarters, Tmb, Today In Asia, Zero Growth

This entry was posted on Monday, October 6th, 2008 at Monday, October 6, 2008 and is filed under Business News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.