GPF sees 0.70% drop in 12-mth return

"The GPF's lower return in the first half of 2008 was a common phenomenon among all investors both here and overseas," GPF secre¬tarygeneral Visit Tantisunthorn said in a statement yesterday

"Both the equity and debt markets have been volatile since late last year as a result of the subprime woes coupled with the high oil price globally that has pushed up inflationary pressure around the world and hurt global equity markets, including Thailand," Visit said.

"Besides, high inflation has also had an impact on debt instruments. It is unusual that both events hap¬pened simultaneously."

The Thai stock market plunged nearly 20 per cent in the first half of this year.

Visit said the GPF's threeyear return (20052007) stood at 6.47 per cent and its fiveyear return (20032007) at 6.61 per cent. The overall return since its inception in 1997 is 8.24 per cent.

As of June 30, the GPF - one of the country's largest funds - allo¬cated 69.7 per cent in the local equi¬ty market, 10.27 per cent in local debt instruments, 4.08 per cent in overseas debt instruments, 8.36 per cent in overseas equities, 3.88 per cent in property and 3.71 per cent in alternative investments.

The fund's return for the previ¬ous year ending on June 30, 2007 was 9.22 per cent.