GPF appoints six fund managers
The Government Pension Fund (GPF) yesterday assigned five asset management firms and Bangkok Bank (BBL) to manage Bt54.6 billion of its total Bt305.78 billion assets.
BBL, Kasikorn Asset Management, One Asset Management and Tisco Asset Management are retained as fund managers while MFC Asset Management, Aberdeen Asset Management and ING Funds (Thailand) are the newcomers. The contract is for three years. The GPF has specified a risk frame but will allow the financial institutions to freely manage its assets. The Bt54.6 billion is split into four categories. The first is an equity fund with an enhanced index fund management style, under which Kasset and One have each received Bt1.2 billion to manage. Under the equity fund with an active management style, Aberdeen, Tisco and ING have each been awarded Bt1.2 billion to manage. The third, a fixed-income fund with an enhanced index fund management style sees BBL, Tisco and One granted Bt8.1 billion to manage, while the fixed-income fund with an active management style gives Kasset, MFC and ING Bt8.1 billion each to manage. Visit Tantisunthorn, secretary-general of the GPF, said all the assigned asset management firms and BBL must report the net asset value daily and that the evaluation will be conducted quarterly. Under the contract, those managing GPF's equity fund with active management style must generate returns of at least 2 per cent higher than the Stock Exchange of Thailand's SET50 index every year while the enhanced index style must outperform the SET50 by at least Bt1.25 per cent. The fixed-income fund with enhanced index fund style must be able to better the benchmark of the Thai Bond Market Association by at least 0.75 per cent, while the actively managed fixed-income fund should generate at least 1.25 per cent higher returns than the Thai BMA's benchmark. The GPF earlier estimated that its returns this year would be about 5-6 per cent, less than the 6.83 per cent achieved last year. Visit said the asset allocation was based on each financial institution's expertise. This time round the fee will include an incentive calculation depending on each fund's performance. Earlier, the GPF was charged a flat fee.
Piyarat Setthasiriphaiboon The Nation
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