Bangkok--1 Nov--KTAM
KTAM launches KTAM SET Banking ETF Tracker, the first ETF in Thailand that tracks SET Banking Sector Index.
Khun Somchai Boonnamsiri, Chief Executive Officer of Krung Thai Asset Management PCL. (KTAM), announced the launch of KTAM SET Banking ETF Tracker: EBANK, the first exchange-traded fund in Thailand that tracks SET Banking Sector Index. The fund’s IPO period is 1-9 November 2012 with registered fund size 1,000 million Baht and minimum investment of 5,000 Baht (multiple of 1,000 Baht). The fund’s policy is to invest in stocks of the companies that are constituents of SET Banking Sector Index. The fund will register in the Stock Exchange of Thailand on November 20th, 2012 with the ticker: EBANK.
The fund offers investors the opportunity to obtain return that links to the movement of SET Banking Sector Index after expenses. The fund is flexible with real time trading on the Stock Exchange of Thailand. The price per unit is approximately 5 Baht and can be obtained instantly without having to wait until the end of the day like other traditional mutual funds. In addition, the fund’s policy allows for dividend payment of up to 4 times per year. Asia Plus Securities PLC. is the market maker for this fund.
Set Banking Sector Index consists of stocks of commercial banks that are listed in the Stock Exchange of Thailand. Currently, the index consists of 11 companies which are BAY, BBL, CIMBT, KBANK, KK, KTB, LHBANK, SCB, TCAP, TISCO, and TMB. SET Banking Sector Index is a market capitalization-weighted price index, which currently contributes to around 20% of the SET index.
During the first 9 months of 2012, SET Index appreciated 26.67% while SET Banking Sector Index appreciated 36.06%. We believe the Banking Sector will continue to benefit from retail and SME loan growth. The retail loans should get a boost from first-car buyer tax rebate program and first-home buyer rebate program. The SME loans should see a considerable growth as domestic demand picks up from increase in minimum salary and daily wage. Furthermore, the decrease in cooperate tax rate to 23% in 2012 and 20% in 2013 is another factor that should benefit overall earnings of the banking sector.
Investors can request fund prospectus from any Krung Thai bank and appointed Participating Dealers including KT-ZMICO Securities Co.,Ltd. and Asia Plus Securities PCL. or appointed selling agents including Finansia Syrus Securities PCL., Country Group Securities PCL., CIMB Securities International (Thailand) PCL., KTB Securities (Thailand) Co.,Ltd., and UOB KAYHIAN Securities (Thailand) PCL. or contact KTAM at 02-670-4900 press 9.