Unsettled parent hurts asset manager

TMB Asset Management (TMBAM) is expected to revise its forecast growth in assets under management this year downwards, from 15 per cent to 10 per cent.

The move follows a decline of Bt2 billion in the first five months of the year.

The slump can be ascribed to the unclear policies of TMB Bank, TMBAM's parent, following the acquisition of a major stake in the bank by Dutch-based ING.

"This year, we must lower our growth target for assets under management, because we face not only stiff competition from banks' deposit products, but also weak confidence on the part of investors, because the organisational structure of TMB Bank is not yet complete. We expect TMB Bank's service's structure and policies to be completed in the second half of the year," said TMBAM managing director Jotika Savanananda.

Originally, the company aimed at 15-per-cent growth in assets under management this year, from Bt130 billion last year.

Should the company achieve a doubling in size of its CPN Retail Growth Property Fund in the third quarter, from Bt10 billion to Bt20 billion, then the original growth target may be achieved, she said. The property fund is managed by TMBAM.

Another property fund under TMBAM's management, the Luxury Real Estate Investment Fund (LUXF), closed at Bt10 on its debut yesterday on the Stock Exchange of Thailand, with the aim of increasing trading liquidity to unit-trust holders.

The LUXF, which has a size of Bt1.97 billion, has invested in the freehold rights of the Six Senses Hideaway Yao Noi on Koh Yao Noi in Phang Nga Bay. It guarantees returns of 6 per cent in the first year, 6.5 per cent in the second year and 7 per cent in the third to the fifth years. Its policy is to pay a dividend twice a year with at least 90 per cent of net profit.

The Six Senses Hideaway Yao Noi had an occupancy rate averaging 40 per cent between last November and this past March, and it is expected to reach 53 per cent this year.