TMB Asset Manage-ment (TMBAM) will take charge of TMB Bank's Bt4-billion provident-fund portfolio as its introduction to the industry, after being granted an operating licence by the Securities and Exchange Commission.

Managing director Jotika Savanananda said the firm would tailor provident funds to meet the requirements of employees.

"We'll start to reach more customers in this market, although we'll [first] be transferred the entire provident-fund portfolio from TMB Bank. We plan to offer customers funds that allow them to choose how much risk they want to take," she said.

Although interest rates are about to decline, Jotika said this was unlikely to affect the net asset value of TMBAM's fixed-income funds.

"The interest-rate drop might slightly affect the market for fixed-income funds, but fixed-income funds would remain more attractive, compared with the interest rate offered on savings accounts," said Jotika.

"Also, it's up to the banks whether they want to raise their savings portfolio. If the push from the banks is small, it's possible that fixed-income funds would do fine next year."

TMBAM is the fifth-largest asset-management firm out of 18 currently operating in Thailand. Its net-asset value increased from Bt61.97 billion at the end of last year to Bt100 billion at the end of last month, a rise of 61.37 per cent. On average, the industry posted growth of about 30 per cent, half of which was seen in the same period last year.

Most of TMBAM's growth was driven by a series of short-term fixed-income funds, usually running for three, six or 12 months.

TMBAM is currently in discussions with the Stock Exchange of Thailand (SET) to launch another index-linked equity fund next year.

"We're designing the formula of this index. It will probably be launched next year," said Jotika.

TMBAM, the country's biggest securities-index-linked fund operator, already has six index-linked funds.

Three are linked to the SET 50 Index, while the other three are linked to TMBAM's Jumbo 25 in-house index, in which the firm diversifies its investment in 25 stocks.

Earlier, TMBAM had planned to launch a fund through which investment would have been linked to infrastructure companies.

Jotika said TMBAM planned to launch its second foreign-investment fund (FIF), which would invest in securities in the United States, Europe and Asia, in next year's first quarter.

"We haven't had an FIF that invests in equity. So we think this might be an option for our customers to diversify their investment portfolio. The investment will be focused regionally rather than emphasising any specific market," she said.

Late last year, the firm launched its first FIF, the TMB Gold Fund, which tracks the index of the global gold price.

Siriporn Chanjindamanee

The Nation