RCM Oriental may up ratio of Thai stocks in portfolio
The Allianz Global Investors Selections RCM Oriental Income Fund will consider increasing the number of Thai stocks in its investment portfolio from the current two, as the potential earnings growth of local firms is expected to improve following economic stabilisation and democratic elections.
Stuart Winchester, senior fund manager of Allianz Global Investors Hong Kong, said yesterday that the US$776.62-million (Bt28.42 billion) flexible Allianz GIS RCM Oriental Income Fund was founded in 1985 but has been under his management since 1994. "The political risk is expected to stabilise. The interest-rate trend is downward, so there will be some turnaround stocks to drive returns in the future as earnings growth at many good companies from next year on is likely to outperform this year's," he said. PrimaVest Asset Management yesterday launched the PrimaVest (Thailand) Oriental Income Fund, which will invest in the Allianz GIS RCM Oriental Income Fund. The investment strategy will depend on the market circumstances, in which the investment proportion of equity can be changed from 50-100 per cent and the investment proportion of convertible bonds and fixed-income tools can be changed in a range of zero to 50 per cent. The minimum investment is Bt5,000. Subscription for the initial public offering will be in January. Piyarat Setthasiriphaiboon, The Nation
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