Finansa Asset management to launch two fifs

The company expects the funds to provide annual returns of more than 15 per cent, the same as the average over the last 10 years for this kind of investment.

It has sought approval for the FIFs from the Securities and Exchange Commission.

The company will also launch a moneymarket fund this month in response to demand from investors. Many savers are likely to move their deposits to other channels of investment following last Monday's implementation of the Deposit Protection Act.

Monchai Jaturanpinyo, chief investment officer of Finansa Asset Management, said the FIFs - the Global Managed Futures Fund and the Global Thematic Equity Fund - would be launched by yearend.

The Global Managed Futures Fund will invest in equities futures, bond futures and commodities futures as both short and longterm investments, thus dispersing the risk.

"The concept of investment in a futures fund is risk dispersal, where volatility is targeted as not exceeding 15 per cent. If the volatility is above the limit, the investment will be adjusted. Risk management is considered to be more important than the return," said Monchai.

The Global Thematic Equity Fund will invest in foreign equity funds such as those covering global infrastructure equities, and equities in consumption sectors in Asia.

The company will pick the theme of equities to be invested, such as the Middle Eastern and African stock markets, which grew by 10 to 20 per cent in the first six months of the year, despite the poor world economic situation. But these are small markets and risky, said Monchai.

"The purpose of these two funds is to disperse investment, as we want to have investment types that offer longterm returns. If we only invest in the Thai market, and if the market gets worse, our investment will be affected. Therefore, we must have both foreign and Thai equities, and both commodities and futures," he added.

Monchai said the return from the FIFs should be at least 15 per cent a year.