KTAM continues to Move Forward with Investment in Top Financial Companies Worldwide Launching KTAM World Financial Services Fund, IPO October 13-27
Khun Somchai Boonnumsiri, Managing Director of Krung Thai Asset Management PCL., announced that the company’s latest Foreign Investment Fund, KTAM World Financial Services Fund (KT-FINANCE), will go for IPO during October 13th – 27th, 2009 with registered funds size of 2,000 million baht. KT-FINANCE will invest at least 80% of its Net Asset Value in the master fund, Fidelity Funds-Global Financial Services Fund, managed by Fidelity International. Fidelity International is one of the internationally well recognized asset management companies with expertise in equity fund management.
The master fund won the Best Fund Awards for 3-year and 5-year performance in the Equity Sector Banks and Other Financials category awarded by The Edge-Lipper Singapore Fund Awards 2009. It was also awarded with the same accolade for the 5-year performance by Lipper Fund Awards 2009 in Hong Kong. On top of that, in 2008, the fund was awarded for 1-year performance by Morningstar in Belgium.
The master fund’s fund size amounts to 355 million EURO or about 17,300 million baht (as of 31st August 2009). It aims to provide investors with long-term capital growth principally through investment in the equity securities of companies throughout the world which are involved in providing financial services to both consumers and industry. Such companies may include banks, non-life insurance, life insurance, real estate, and financial services, which includes asset managers, leasing companies, consumer finance, private banks, stock exchanges, etc.
Khun Somchai said that KT-FINANCE is an attractive investment fund because it opens the opportunities for investors to benefit from the long-term capital appreciation and earnings growth of financial services companies throughout the world as the economy recovers, due to the fact that financial sector made up of more than 20% of MSCI all Countries World Index. Furthermore, while the prices of global financial shares have faced significant correction in recent years, the profit outlooks of many financial services companies, such as stock exchanges and insurance company, are improving. This is another opportunity to gain attractive returns and diversifications for Thai investors, who are already familiar to financial sector stocks.
In addition, another great reason to invest in KT-FINANCE is that the master fund is supported by Fidelity International’s global research team which is recognized as one of the largest in the industry. The fund manager picks stocks with attractive valuation and chooses to invest only in companies that he and the analysts have thoroughly researched and understood the business. Fidelity’s fund managers are usually groomed internally and are often promoted from experienced analysts. Thus, they can effectively use their stock analysis skills from years of research experience to help them make better long-term investment decisions. Fidelity International currently has USD 179.8 billion dollars of assets under management (as of 30 June 2009.)
Citibank, as a distributor, by Khun Pavin Rodloytuk, Retail Banking Director said the corporate earnings recovery looks to have begun after falling by more than 40% over the 16 months to May 2009. The recovery in earning momentum looks strongest in Emerging Markets and early-cyclical sectors.
Earnings momentum strategies have typically struggles around turning points but tend to reassert themselves during mid-cycles. As we move towards the middle part of the current earning cycle, Citi analysts believe earnings momentum may again help investors outperform. We favour sectors that are likely to benefit most from the earnings recovery but are still reasonably valued in particular Financials and Energy.
“Again investors should always take disciplined investment approach in building a diversified portfolio and realign their portfolio with changing goals and the economic environment” Khun Pavin concluded.
