SCB Securities expects AUM to pass Bt1 tn this quarter
July 09, 2014 00:00 By The Nation
SCB Securities Co is confident that its assets under management will exceed Bt1 trillion this third quarter thanks to the popularity of the Pinthong Industrial Park Property Fund.
SCB Securities reaffirmed that LTF (long-term equity fund) benefits would exceed tax expenses if 30-50 per cent of the fund could be retained. Retirement mutual funds (RMF) that offer strong growth potential should meet investors’ retirement stage objectives.
Chief executive officer Smith Banomyong said yesterday that the company’s AUM rose to Bt960 billion in the first half of this year and should hit Bt1 trillion this quarter, with at least Bt10.6 billion expected from the Public Debt Management Office.
The Pinthong Industrial Park Property Fund (PPF), which began trading on the SET yesterday, is one of SCB Securities’ REIT-1 funds. It was well received because of expected stable returns. The first-year yield is expected at 7.8-7.9 per cent.
SCB Securities manages property and infrastructure funds worth about Bt120 billion. It plans to have three to four REITs valued at Bt10 billion. It is reviewing the feasibility of other infrastructure funds, which are likely to be private-sector projects related to electricity, transport, communications or energy pipelines.
Although long-term funds face an issue about the extension of tax breaks for investors, SCB Securities is confident that it can retain about 30-50 per cent of investors’ funds by providing information to customers and investors – who are a 50:50 mix of company and non-company staff – that their non-company staff can tap the benefits offered by RMFs to meet their retirement needs.
In Europe, LTFs help promote national savings, enhance the corporate governance of listed firms and reinforce the stability of capital markets via institutional investors.
At this point, SCB Securities is not interested in offering high-yield bond funds to ensure strong business growth.
However, should SCB Securities later decide to set up such a fund, it would seek an experienced partner, as such a high-risk type of fund must be sold to the right group of investors, in accordance with SCB Securities’ investment policy, Smith said.