Ayudhya Fund launches new knowledge centre at ploenchit

Since Asian parents often tell their children there's no harm in learning more, this two-storey centre could do wonders for investors. It would be apt if more investors resisted the tendency to trade stocks recklessly like during the pre-1997 crash days and instead conducted proper research on the stocks they were investing in.

Educating the public about the merits and perils of a punt works both ways.

Long the domain of neutral organisations like the Stock Exchange of Thailand, which has its Maruey Knowledge and Resource Centre and sub-stations at malls and school libraries, the asset-management industry has not been consistently active save for a few articles, columns, seminars and roadshows.

With new challenges like high inflation, interest-rate hikes and a general gloom clouding the market, this is perhaps a good time for investors to start educating themselves about stock fundamentals.

The centre is also great branding opportunity, said AYF chief executive Chatrapee Tantixalerm. Although the company is not looking to make money from the site, AYF Access Place will serve as gateway for professionals and the public, particularly in the business district, to learn more about the market.

The physical presence is important, especially since AYF would like to double its mutual fund accounts to 60,000, from 30,000 now, he said.

That would double last year's net asset value, which now stands at Bt53 billion, allowing the company to become less dependent on Bank of Ayudhya, its owner, to market its products. The goals are expected to be achieved this year.

Bank of Ayudhya president and CEO Tan Kong Khoon, participating in the opening ceremony, said the centre could help investors improve their understanding of long-term investment opportunities. There are inherent struggles between the bank's products and AYF's. The bank's sales teams must sell their debentures and deposit products. In the last eight months alone, the bank's Bt45 billion of debentures were 10-per-cent oversubscribed.

Sixty to 70 per cent of AYF's funds are sold through the banks' 566 branches nationwide, with the rest through AYF's own service agents. But Chatrapee wants a 50:50 balance. Access Place, which is open seven days a week from 9am to 5pm, will also give AYF records of its investors' transaction behaviour, said Chatrapee.

For novices, money-market funds, long-term equity funds and retirement mutual funds should be the main attractions, he said.

As first-time customers' appetite for risk widens, AYF's investment advisers and marketing staff at the centre will offer more exotic products, such as its portfolio foreign-investment funds.

AYF's portfolio of funds is also now adjusting to the current in-

flation-battered market, said

chief investment officer Prapas Tonpibulsak.

In a wait-and-see environment, most local equity funds now hold 8-9-per-cent cash as opposed to the usual 3-4 per cent, he said.

Vietnamese investments in the Ayudhya Asean-Vietnam Fund have also been scaled down to 10 per cent.