He predicted the Bank of Thailand would raise the 14-day repurchase rate by no more 50 basis points this year.

With inflation hitting the market hard this year, the GPF plans to expand its equity investments and its proportion of overseas investments. It earlier asked the government for approval to raise the equity investment ceiling imposed on it to 30 per cent from 20 per cent. If it gets the nod for that request, the GPF plans to ask for approval from the BOT to expand its ceiling of investments aboard from 10 per cent to 15 per cent.

Of the Bt294.5 billion in assets it managed as of March 31, 71 per cent was invested in domestic debt tools, including government bonds and corporate debentures. Another 11.6 per cent was in domestic equities, while 2.9 per cent was invested in property. Almost 10 per cent was invested abroad.

The GPF has also directly invested 5.5 per cent of the assets it manages in non-listed companies and Thai Petrochemical Industry (TPI).

In the year ended March 31, the GPF managed to obtain a 6.4 per cent return, slightly lower than the 6.8 per cent return it enjoyed in the year ended December 31, 2005.

With 1.2 million members, the GPF generates Bt18 billion each year. It expects a 5-6-per-cent return this year and it expects to have Bt400 billion in assets under its management by 2009.

Separately, Visit yesterday said that the GPF's investment in TPI was a long-term one. The silent period is two years but it plans to hold the shares up to three to five years before making any move.

Piyarat Setthasiriphaiboon

The Nation