TMB Asset's Gold Fund to rise 10%
TMB Asset Management (TMBAM) has forecast that the net asset value (NAV) of its TMB Gold Fund will rise by about 10 per cent this year, according to the assistant to the director of the firm's Investment Department, Kampol Jantavibool.
Gold prices are correlated with oil prices, he said, and they are expected to continue to rise this year. Launched in December 2005 when global gold prices were on the rise because of speculation, the NAV of the TMB Gold Fund recently reached Bt11.2 per unit. This already includes foreign exchange losses. The price of gold has been rising since late 2005 and continued to rise until the fourth quarter of last year, when it fluctuated and began to fall in relation to global oil prices. TMBAM last year asked the Securities and Exchange Commission for approval to revise its prospectus, providing an opportunity for it to shift its Gold Fund investments from unit trusts of StreetTracks Gold Trust on the New York Stock Exchange to the Singapore Stock Exchange's StreetTracks Gold Shares. However, Kampol said that after reviewing the trading liquidity of StreetTracks Gold Shares, the firm decided to maintain its trading on the New York exchange. However, if StreetTracks Gold Shares are more actively traded in the future, it will reconsider switching to Singapore. Trading in New York has a drawback, he said. The daily marking of the net asset value of the Gold Fund is delayed by the time difference between Thailand and New York. If TMB's Gold Fund shifts its investment to Singapore, the fund's NAV will be marked at the end of each trading day similar to other funds. Meanwhile, TMBAM has set up a risk management committee to supervise its funds. Former Finance Minister Thanong Bidaya has been appointed as chairman and members include former Government Pension Fund general secretary Nawaporn Ruangskul and Sukon Karnchanahattakit, formerly of PricewaterhouseCoopers. Piyarat Setthasiriphaiboon The Nation
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