Speculation on mergers continues

Although long denied by the heads of both companies, the merger of ING Funds (Thailand) and TMB Asset Management (TMBAM) is a "rational thing to do", said Phillippe Damas, CEO of ING Retail Bank Asia and a TMB director. It is something the parent company has been studying but not a priority at the moment.

Still, the first tentative steps towards a form of synergy were taken yesterday. The two ING companies - ING Funds (Thailand) and ING Life Thailand - will start rolling out their products through TMB branches within the next two months. Both companies will begin with simple products first. The merits of the four savings products, with payment terms ranging from eight to 15 years, can be explained within two minutes, said ING Life Thailand president and CEO Rajesh Sethi.

Since ING companies do not have access to TMB's customer database, the relationship between the two is now more that of a seller and a buyer. However, the two work closely in choosing the right products for bank customers.

ING Funds will offer products with the lowest risks first, such as money-market funds and bond funds with three to six months of maturity.

"This will be as soon as June 12," said managing director Maris Tarab.

For now, ING companies are focusing on laying the groundwork for more collaboration. Back-office and information-technology systems will be tested at the end of this month, said Maris.

Maris said the next logical step would then involve upping the level, reach of services and buying options for the bank's customers. Soon, TMB customers will have an ING Funds card for financial transactions not dissimilar to TMBAM's card, Maris said.

ING Funds needs TMB's network of 427 banks to boost its mutual-fund business. With most of its businesses in private funds, ING Funds looks to increase its net asset value Bt20 billion to Bt60 billion this year. That translates into 50,000 retail-investor accounts, from about 26,000 today, Tarab said.