In accordance with Finance Ministry regulations, the GPF is now allowed to invest in the TFEX. Visit said the GPF would not act as a market player in TFEX but instead would use this derivatives tool for hedging proposes.

As of the end of last year, Bt300 billion worth of assets under GPF management had been allocated for Thai fixed income (68 per cent), Thai equity (14 per cent), global fixed income (8 per cent), alternative investment (6 per cent), property (3 per cent) and global equity (1 per cent).

The state-owned fund generated a net rate of return to its members of 11.84 per cent in 2003, 2.02 per cent in 2004 and 6.83 per cent last year.

Meanwhile, the GPF yesterday granted permission to three life insurers - American International Assurance (AIA), Muang Thai Life Assurance and Thai Life Insurance - to sell their life-insurance products to 1.17 million of its members for two years from October 2.

The GPF first granted this opportunity to two life insurers two years ago. One, AIA, sold its policies to 149,000 GPF members. So far, insurers have sold about 162,000 policies to GPF members and obtained Bt608 million in total premiums.

Each of the three life insurers awarded this opportunity will provide 5-10-per-cent discounts on regular premiums for policies sold to those in general and special services.

Visit expects that when this new contract expires in two years, 200,000 GPF members will have bought life-insurance policies.

For non-life insurance, Visit said that so far Dhipaya Insurance was the only insurer GPF recommended to its members, because the country's biggest non-life player offered the lowest premiums to its members.

Last month, the GPF assigned Bangkok Bank and six asset-management firms to manage Bt54.6 billion worth, about 18 per cent, of its total assets under management.

Piyarat Setthasiriphaiboon

The Nation