Bangkok--19 Sep--SET
Global fund managers and a market maker made valuable contributions to the recent forum on Exchange Traded Funds (ETFs) co-hosted by The Stock Exchange of Thailand (SET) and Securities Exchange Commission (SEC).
The “Launching the first equity ETF in Thailand: issues, obstacles and opportunities” forum was well attended by securities companies, investment management companies, commercial banks, Insurance Department, insurance firms, the Bank of Thailand, Government Pension Fund, and custodian businesses.
“The seminar is an important step in launching equity ETF in Thailand. It is part of the Thai market’s evolution to an integrated and competitive market providing a comprehensive range of products, as indicated by the 2nd Thai Capital Market Master Plan (2006-2010), and SET’s 3-year strategic aim to be one of the region’s important markets,” SET Chairman Mr. Vijit Supinit said.
“This is the first time a global market maker and three representatives from leading fund managers such as Barclays Global Investors (BGI), State Street Global Advisors (SSgA), and Citigroup have together shared their expertise with Thai institutional investors. It greatly enhances our market consultation seeking to identify those fund features most appropriate for investors. We are also seeking proposals regarding management of the first Thai equity ETF,” SET Senior Vice President Dr. Sethaput Suthiwart-narueput stated.
ETFs are well-accepted globally, and Asian exchanges such as Korea, Singapore, Malaysia, and even China, have already introduced them. ETFs internationally (assets as of May 2006: THB 18 trillion; approx. USD 473.68 billion) have a compound annual growth rate of 70% or, in other words, have almost doubled every year since 1993. Thailand is still studying the introduction of ETF and a survey is being prepared which will provide data on which to base the fund’s design.
“An equity ETF is an open-ended fund listed on the exchange, which can be traded easily just like stocks. However, its administrative costs are low and it reduces risk through diversification, rather like an index fund. Since ETFs combine distinct features of stocks and open-ended funds, they are another alternative for investors preferring lower risk exposure than that of direct equity investment. Moreover, for institutions, equity ETFs enable them to manage their assets more efficiently,” Dr. Sethaput said.
For more information, please contact the Corporate Communications Dept.:
Ladawan Kantawong Tel: 0-2229-2036 / Kulvida Jintakawong Tel: 0-2229-2037 /
Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797