Bangkok--17 May--Kasikorn Asset
Kasikorn Asset has introduced the K MPLUS Fund (K-MPLUS) in response to risk-averse investors’ demands to park their money for longer than a week and seek returns from good-quality debt instruments with longer duration than those of money market funds. The new fund’s policy is to invest abroad with 100-percent hedging. With high liquidity, the fund can be traded daily. The initial public offering (IPO) period is May 27-June 3.
According to Mr. Chongrak Rattanapian, Executive Chairman of Kasikorn Asset Management, KAsset is introducing K-MPLUS for investors who wish to park their money amid the present low-return market situation and gain attractive yields. The new fund will be highly liquid and can be traded daily. The fixed-income fund’s policy is to invest in deposits, as well as debt instruments of governments, corporations and financial institutions, both at home and abroad. The fund invests 50 percent of its net asset value abroad with 100-percent hedging against currency risk.
“K-MPLUS is offered as an alternative to KAsset’s money market and fixed-income funds. The new fund is designed to meet the needs of those who wish to park their money for more than one week, expect better returns than those of local and foreign debt instruments with duration of approximately six months to one year and have a potential to absorb volatility from longer-duration debt instruments, which normally cause daily volatility of NAV. However, the new fund will be highly liquid, allowing investors to trade daily with T+1 settlement period. Additionally, retail investors will fully benefit from the fund’s returns with a tax waiver,” he said.
Mr. Chongrak said domestic rates and returns on debt instruments will remain stable or move downward. Over the short-term period, rates and bond yields will remain low and volatile until May 29. Despite some market expectations and yields falling, yields of local and foreign bonds may slip further upon domestic reference rate cuts. Several regional central banks, including those of South Korea, Vietnam, Australia and India, have trimmed their policy rates since early this month. This may add some pressure for rate reduction at the Bank of Thailand. Meanwhile, domestic inflation is currently under control. Therefore, it is unlikely that the policy rate will be increased. Thailand’s domestic rates are expected to remain low. In this connection, investment in a highly-liquid fixed-income fund that invests in debt instruments with longer duration and attractive yields is considered a good choice for those wishing to park their money for a short time before further investment.
Interested persons may invest in K-MPLUS with a minimum amount of 5,000 Baht. For more information and a prospectus, please contact any KBank branch or the KAsset Contact Center by calling 0 2673 3888.