The firm said the low growth was due to competition from banks that have launched a series of attractive fixed-deposit rate products, as well as political uncertainty.

Excluding private funds, the company's total net asset value (its assets minus liabilities) as of March 24 amounted to Bt45.9 billion - representing 4.5 per cent of the industry's net asset value - compared with Bt42.1 billion at the end of last year, according to the Association of Investment Management Companies.

At the end of last year, One Asset's net asset value stood at Bt62.6 billion, if private funds were taken into account. Private funds generated Bt15 billion, while Bt13 billion came from mutual funds such as fixed-income, mixed and equity funds. The remainder came from special funds.

The company's new president, Somjin Sornpaisarn, said the small growth was attributable to money finding its way to better places.

"With the banks coming up with new deposit products with attractive interest rates, it's natural that investors shift their money to bank deposit accounts. The political uncertainty has also slowed down investment," said Somjin, who assumed his post almost two weeks ago. He said that once the political crisis was resolved the market would return to normal.

He said that One Asset aimed to increase the value of its mutual funds by 10 per cent this year. But with most of the company's customers institutional investors, 10-per-cent growth for the already large portfolio of private funds and special funds will be a hard order to fill.

Somjin, a former senior director of the derivatives department of Kim Eng Securities (Thailand) Plc, said that this year the company would launch a fund that related to derivatives.

"If the Thailand Futures Exchange commences as scheduled, derivatives will be adapted for our new fund to be launched this year. At the early stage, derivatives will be used for risk protection. But once the market matures, derivatives can be used to help generate higher returns for investors," said Somjin.

Last year, One Asset failed to raise funds for its Quality Houses property fund, as it did not meet Securities and Exchange Commission regulations. As a result, the fund was dropped.

However, Pansupa Sesavej, executive vice president, said the company would re-launch the fund. The company is in the process of seeking underwriters or financial advisers to join as partners.

Piyarat Setthasiriphaiboon

The Nation