MFC expects tough 2009

Written by Writer on Monday, October 27th, 2008

ASSET MANAGERS

MFC expects tough 2009

NUNTAWUN POLKUAMDEE

MFC Asset Management expects revenue growth of 15% to 20% this year despite difficult market conditions.

But it expects performance to decline in 2009 as the global recession and heavy market losses curb investor demand.

MFC reported first-half profit of 56.1 million baht, up from 45.6 million the year before. Fee and service revenue rose 51.66% to 274.1 million. The company will announce its third-quarter results in the next few days.

President Pichit Akrathit said MFC had benefited from positive market sentiment in the first half. But assets under management would decline this year due to the sharp drop in global equities and commodities markets.

Dr Pichit said MFC would continue with plans to diversify its services, mainly through three new subsidiaries.

MFC Real Estate Management will provide property investment advice, including hotel management, serviced apartments and commercial property. MFC Financial Advisor will offer services on financial products and project consultancy, and build on MFC’s past work for projects such as the Bangkok subway and the Chaeng Watthana civil service centre.

The third company, Thai MFC-Exim International, is a joint venture with the Export-Import Bank and will provide international trade advisory services. Its first project is aimed at Thai exporters eager to expand to Russia and at Russian investors looking at Thai opportunities.

Dr Pichit said MFC was also working with Adkinson Securities to set up a new small-cap matching fund with a focus on small listed companies.

According to the Association of Investment Management Companies, as of mid-October, MFC ranked fourth among local fund managers with 137.8 billion baht in assets under management through 92 funds, for a market share of 8.93%. It had 145.9 billion baht in 80 funds at the end of 2007.

Shares of MFC closed unchanged at 10.70 baht on Friday on the Stock Exchange of Thailand.

Bangkok Post
Monday October 27, 2008