The fund structure will be similar to the MFC's Energy Fund, launched yesterday, for which it signed an official agreement with PTT, PTT Chemical, Thai Oil, Bangchak Petroleum and the Stock Exchange of Thailand. The Energy Fund will inject around Bt3 billion into setting up the Bt4-billion regional energy fund.

The fund launched yesterday will invest in about 20 energy-related companies, with contributions also from the Government Saving Bank, the Social Security Office, the Government Pension Fund and Banpu.

It will invest in four or five companies a year and expects that within 10 years, when the fund matures, these companies would be able to fundamentally grow and list on either the SET or the Market for Alternative Investment.

Speaking of next year's proposed regional energy fund, MC president Pichit Akrathit said: "The format of the fund will be like a foreign investment fund that will invest in the energy companies in the Asean region. However, a lot of detail still needs to be discussed."

Pichit said MFC was also looking at the possibility of setting up another private equity fund, which will invest in financially distressed companies.

Meanwhile, Tisco Asset Management aims to launch more capital-guaranteed funds within the next three months, in which the return would be linked to an overseas stock index.

Picha Ratanatam, senior vice president of the company's head of investment management (mutual fund & private fund business), said the company would pick the index to be linked with such a fund, in countries that have high potential for economic growth, which includes Japan and those in Europe.

Tisco has already launched two capital-guaranteed funds linked to indexes abroad. One is linked to the index in China, while the other is linked to Hong Kong's Hang Seng. They are together sized at about Bt1 billion.

The company also plans to launch a fixed-income fund, which will invest in corporate bonds with maturity periods of six and nine months. Such funds will be launched bi-monthly.

Picha said that such a fund generated returns about 50-60 basis points higher than from a fixed-income fund that invests in government bonds.

In the latter half of the year, the company will focus more on equity and mixed funds, as it expects the market will outperform the first half. This is because the political uncertainty is expected to be resolved and more investors are likely to return to the market.

The firm will offer a long-term equity fund for initial public offering from June 1-11. The Bt2-billion fund will invest in good fundamental and growth stocks. It aims to pay a dividend at least once a year.

Meanwhile, Duangmon Chuengsatiansup, director of the Securities and Exchange Commis-sion's Investment Management Supervision Department, said that about 10 long-term funds (LTFs) would be launched next month, before the expiry of the deadline for such funds. An LTF is a special fund, which offers tax exemption.

The former government initiated the scheme, but limited the time frame for the launch of new funds to end-June.

"We are confident the index could rise to 800 points this year, an increase of 15-20 per cent from the current position. This prediction is based on the assumption that there will be a new elected government and the constitution draft will be okayed," said Picha.MFC is aiming for its assets under management to grow by about 60-70 per cent to Bt12 billion this year. The figure is currently Bt10 billion, against Bt7.3 billion at the end of last year.

Piyarat Setthasiriphaiboon

The Nation