FIFs have Bt54m exposure to sick US firms

Pravej Ongartsittigul, SEC senior assistant secretarygeneral, however did not provide details.

One Asset Management admitted that 1 AM US Recovery Opportunity Fund, with a size of Bt1.6 billion, had invested in Lehman Brothers' stocks.

The mixed fund, with a twoyear maturity, was set up in June this year and it has policy to allocate at least 80 per cent of its net asset value (NAV) in overseas debt and equity instruments, debtcumequity instruments and deposits with focus on the US.

As of September 12, the fund's NAV per unit stood at Bt8.7361, according to One Asset Management's website.

At present, One Asset Management has eight FIFs.

UOB Asset Management (Thai) chief executive officer Vana Bulbon said his company funds had not invested in securities of Lehman Brothers, American International Group (AIG) and Merrill Lynch.

The company in July this year rolled out UOB Smart Financials Opportunities Fund with a size of Bt1.4 billion. The fiveyear maturity fund has a policy to invest in unit trusts of United Financial Opportunities, investing in financial institutions worldwide, including the US and Europe, managed by UOB Asset Management Singapore.

He said the decline in NAV of FIFs and local equity funds was in tandem with the stock markets around the world and the depressed situation would be only shortlived.

"I believe the turmoil of Lehman Brothers, AIG and Merrill Lynch would bottom out soon. The Thai stock market has already factored these negative developments and its fall has been greater than other stock markets in the region," he said.

Siam City Asset Management yesterday confirmed through its website that no funds under its management had invested in the three troubled US financial institutions' securities.

Ayudhya Fund Management assistant vice president risk controls department Tanitpong Chuenpibl confirmed that funds under management of his firm did not have any exposure in the US market.

The global stock market wobble has pushed down NAVs of FIFs but no rush to redeem FIFs has been seen yet, he said.

TMB Asset Management director Chotika Sawananon said funds under her company's management did not invest in Lehman Brothers' securities.

BBL Asset Management also clarified yesterday that its three FIFs had not invested in any securities of the three ailing US financial institutions.