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Unafraid to get their fingers burnt, UOB Asset Management (UOBAM) will be the second Thai asset management company to invest in US equities after the sub-prime crisis.

But this time, unlike the other American stock fund by One Asset Manage-ment, CEO Vana Bulbon will concentrate on just 10 to 20 financial stocks. He warned that stock prices could drop again. And those without the deep pockets of a sovereign wealth fund are advised to hold out at least for the medium term. Or at least three years, said Vana. He believes that things will pick up at least in the last quarter of this year.

As an IPO from July 7 to 14, the United Financials Fund will have a five-year shelf life. But anytime before the third year of the fund, if the Bt1.4-billion fund's NAV grows beyond 100 per cent, the fund will close down and the profits will be shared. Through a feeder fund in Singapore, the new foreign investment fund (FIF) requires a minimum investment of Bt10,000.

Vana said the index for the American financial sector has already declined by 33 per cent since the advent of the debacle. Price to earnings ratio is now at a low of 0.8.

Vana still believes that American financials have the capacity to reboot themselves, given that their corporate loans have not been devastated to the point of no return. He added that most financial institutions in the West, with quasi-federal or government intervention, are quick to recover. The bailouts, though, are mostly for financial stocks and not assets.

 This prompted Jesse Eisinger, columnist for Conde Nast Portfolio magazine, to question in his latest article why no one - not even hedge funds who were the first to emigrate en masse - ever buys their assets.

 In the second half of this year, UOBAM will roll out an FIF every month. Among them will be a fund that will invest in Asian infrastructure.