3 short-term funds in the offing

A least three asset management companies are promoting short-term funds to attract investors who want to earn a higher return than on bank deposits.

Teeraphan Jittalarn, CEO of Finansa Asset Management, said yesterday that the cloudy picture for interest rates in the rest of the year should be an opportunity to offer bond funds to investors who want to hold onto their money. The Finansa Fixed Income Roll Over 6Month5 Fund (FAM FIPR 6M5) is being launched today with a return of 3.35 per cent for the first six months. The promotion runs until next Tuesday.The FAM FIPR 6M5 is a mutual fund focusing on debentures that can pay both principal and interest. It also invests overseas for hedging coverage.

Krungsri Asset Management will sell its six-month Krungsri Fixed Income 6M30 Fund (KFFIX6M30) from today to Monday with a return of 3.15 per cent, CEO Chatrapee Tantixalerm said.

The KFFIX6M30 will be 40 per cent invested in Thai government debt and 20 per cent each in bills of exchange issued by Ayudhya Capital Auto Lease, deposits of Union National Bank and deposits of Standard Chartered Bank (Hong Kong). The minimum investment is Bt10,000.

BBL Asset Management will make available its B/Treasury mutual fund from August 1-8. Fixed-income instruments issued or guaranteed by the Thai government will make up at least 80 per cent of its portfolio.Wasin Wattanaworakijkul, managing director of the mutual business for BBL Asset Management, said the fund is targeting new investors and those who seek higher returns than on savings accounts. Minimum subscription is Bt1,000.