Time to buy, say FIF managers
Although yesterday's drastic drop in stock values on global markets might affect foreign-investment funds (FIFs), fund managers are advising that now is a good time to buy.
Kasikorn Asset Management (KAsset) managing director Wiwan Tharahirunchote said he expected his company's Ruang Khao Global Balanced Fund and KGlobal Equity Fund to record a drop of about 3 per cent in net asset value, judging by the average drop in global markets. "Recently, other markets have sped up so fast, and the Thai market was just starting to catch up, because we have our internal factors," he said. "It's actually the time to buy. Each country has risks at a certain point. However, investing globally remains an alternative for investment diversification." Aberdeen Asset Management CEO Robert Samuel Penaloza called yesterday's decline a short-term correction. "Actually, it's a healthy correction. We expected it to take place last year, but it happened in the first quarter of this year," he said. " Aberdeen has underweighted investing in the United States for quite a while. While the benchmark invests more than 50 per cent in the US, we invest less than 20 per cent. "Although there may be more uncertainties in emerging markets, we believe in investing in Asia in the long term. This correction doesn't mean that we should cut out that investment. It's the time to accumulate more investment," Penaloza said. Nasu Chunsom, head of equity investment at Ayudhya Fund Management, said his firm's FIF portfolio was barely affected, because all of its existing FIFs are convertible bond funds. The company plans to launch an FIF that invests in equities in the third quarter of this year. However, it will take its time to observe market conditions. Nasu said the drop in the global market was short-term speculation and warned investors to place their money carefully. "China's stock market rose rapidly last year. It's possible a rally might not be as hot as last year's," he said. Meanwhile, KAsset plans to launch its first property fund either this month or next after delays to its original plan to launch last month. The Bt2.1-billion fund will be offered only to retail investors.
Piyarat Setthasiriphaiboon The Nation
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