Funds must be 'innovative'
Since regulators have begun to relax the rules for non-Thais to invest in the Kingdom, local investment funds will lose their attraction unless greater product innovation is created, said Pichit Akrathit, president of MFC Asset Management.
"Previously there was double taxation for foreign investors. Also, information about the market was not as transparent as now, so it was not so easy for foreigners to invest here. However, now they can invest direct following the relaxation of ules and obtain any information they require through the use of technology," he said.Currently foreign investors can invest directly by opening a stock-trading account with either local or international brokerages. Also they can invest in Thai shares via non-voting depository receipts, which were designed to help foreign investors avoid foreign-ownership restrictions in listed companies. Onshore funds are another tool for foreign investment in Thai shares. These are attractive to investors who do not want to trade shares through a brokerage. MFC Asset Management currently has four funds under management: the Thai Prime Fund, Thailand Growth fund, Morgan Stanley Country Fund and Thai Fund, which are now together worth around Bt8.7 billion from Bt24 billion a few years ago. Piyarat Setthasiriphaiboon, The Nation
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