K-Asset to launch 3 property funds
Kasikorn Asset Management (K-Asset) aims to launch its first three property funds next year on anticipation that there is plenty of room to expand in the business.
Wiwan Tharahirunchote, managing director of the company, did not reveal any details but said properties such as offices, apartments, hotels, resorts and retail space could generate a satisfactory return to investors as current rental fees are rather low. "The return is somewhere between the return from fixed-income and securities investments. Property investments are good for long-term investment and they're good in an inflation situation like this," she said yesterday. Kasikorn Asset Management's idea to launch this type of fund is in line with its plan to have every type of product in its portfolio. In the first 10 months of operation this year, its net asset value (NAV) grew 11.68 per cent, from Bt214 billion at the end of 2005 to Bt239 billion at the end of last month. The entire industry recorded a NAV of Bt771.15 billion at the end of 2005, and by last month the figure had moved up to Bt969.64 billion. Despite the fact that it has already broken this year's growth target of 10 per cent, the firm expects about Bt2 billion more from Long Term Equity Funds (LTFs) and Retirement Mutual Funds (RMFs) to flow in during the final two months. LTFs recently took in Bt900 million in new money, while RMFs received Bt800 million. "Last year, LTFs and RMFs each generated Bt1 billion in investment in the last two months. We expect the same to happen this year," Wiwan said. Kasikorn Asset Management, the country's largest asset-management company, manages Bt7.5 billion in RMF portfolios and Bt4.4 billion in LTF portfolios, taking a 30.15-per-cent market share in the industry. Yesterday, it officially launched an electronic investment channel, allowing investors to buy and sell unit trusts over the Internet, by telephone and at Kasikornbank ATMs. Meanwhile, Wiwan hinted that the company's board might not appoint a new chairman to replace Piyasvasti Amranand, who resigned recently to become energy minister, as it prefers to wait for his return. Given that the current Cabinet is part of an interim government, Piyasvasti's ministerial tenure should last only one year.
Piyarat Setthasiriphaiboon The Nation
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