Manulife Asset Management CEO Alan Kam, left, and company adviser Chavalit Thanachananattend the official launch of the Canadian-based company’s Thai operations.

The Canadian-based firm targets wealthy customers, initially contributed by Standard Chartered Bank, Deutsche Bank and Phatra Securities, as well as its own sales agents.

Aware of its position as a firm without a bank's exclusive support, Alan Kam, Manulife Asset Management's chief executive, said the company had positioned itself as a foreign-backed company - with Aberdeen Asset Management and UOB Asset Management being considered as competitors.

"We can't compete with the companies that have bank support. We see our strength in managing foreign investment funds [FIFs] and equity funds, so those will be our strong points for penetrating the market. We consider our competition is narrow - only foreign-backed financial groups," he said.

According to Kam, assets under management in the entire mutual-fund industry account for only 20 per cent of the country's total savings. Therefore, he is optimistic of increased opportunities for business in the local market.

Kam, who was Aberdeen's CEO before Aberdeen Asset Management Asia spent Bt245 million to take over its local unit, Aberdeen Asset Management, from the Wanglee family and other shareholders in February 2005, said the firm planned to launch seven funds this year.

It is about to launch its first fund - Manulife Strength China Value FIF - next week after receiving approval from the Securities and Exchange Commission (SEC). It will also launch two equity funds, a money-market fund, a fixed-income fund, a long-term equity fund and a retirement mutual fund.

Manulife Asset Management is among the four firms granted a licence to operate in the mutual-fund business. Seamico Securities, Philip Securities and Sicco Securities' SSEC are keeping a low profile about the progress of their official launches. Given the business style of its parent, Manulife Financial Corp, the group will run life-insurance and mutual-fund businesses together in every location it sets up.

Bruce Hodges, president and CEO of Manulife Insurance (Thailand), who oversees both businesses, said each would run its operation separately. However, the company would consider any opportunities that could benefit both businesses.

In the early stages, Manulife Insurance's agents will start to sell the mutual-fund product once they are well trained and have obtained a mutual-fund licence. Manulife is also considering launching either unit-linked or universal-life products as investment-linked life-insurance coverage.

Meanwhile, One Asset Management will file its Bt1.9-billion Equity Exchange Traded Fund to the SEC next month, after which it will conduct a road show abroad. The firm expects an initial public offering for the fund in August.

Piyarat Setthasiriphaiboon

The Nation