Thailand Future Fund set for launch in 2016

 

THE THAILAND Future Fund may be launched this year after the government finalises the issuing conditions. 

“The working group of the Securities and Exchange Commission (SEC) and Finance Ministry has been working on the conditions that match the government’s demand to issue the fund worth Bt100 billion since last year.

“Now we’re waiting for the final conditions, while the SEC is ready to carry out this policy,” Duangmon Chuengsatiansup, assistant secretary-general of the SEC said yesterday.

The details that are still being worked on include what assets will be sold to the fund, such as the income-generating assets owned by state enterprises.  

All of them have more details. The working group has to take time to do them.

However, if the government needs to issue it this year, that will be done. 

The SEC is ready to enforce all of the rules to support the government’s demand.

The SEC also on January 16 relaxed the rule for mutual funds to expand investment in non-listed infrastructure funds issued both locally and overseas.

“We relaxed this rule to promote mutual funds expanding overseas, as most infrastructure funds abroad are not listed in the capital market. 

“This is in line with the Bank of Thailand’s opening up direct investment by individual investors overseas next year,” she said.

The rule relaxation conforms with the Undertakings for the Collective Investment of Transferable Securities or UCITS standards.

“We will also relax other rules for investment in other funds such as provident funds and real estate investment trusts to match with UCITS standards this year,” she said.

Thailand had 1,321 mutual funds with net assets of Bt3.46 trillion as of October 31; five infrastructure funds had net assets of Bt220.94 billion as of September 30, five REITs had net assets of Bt31.58 billion as of September 30, 355 private funds had net assets of Bt508.61 billion as of October 31 and 412 provident funds had net assets of Bt875.37 billion as of October 31.

The SEC also is studying relaxing the rule for foreign funds that want to sell their units to Thai individual investors in the Thai capital market.  

This is also part of the opening up of opportunities for Thai investors to expand their investment offshore by themselves, said Paralee Sukonthaman, another assistant secretary-general.

The SEC plans to announce this rule for foreign funds in the first half of this year after the proposal passes public hearings. “This is also a part of the plan to follow the Bank of Thailand’s policy to relax the rules for Thai individuals to invest overseas by themselves next year. 

“When our investors can expand their investment in foreign markets, foreign investors or institutions also can expand their investment and business in Thailand,” she said.