Bangkok--20 Apr--KTAM
KT-Mining will be IPO during April 26th — May 12th, 2010 with registered fund size of 2,000 million baht. KT-Mining on average will invest at least 80% of its Net Asset Value in the master fund. The master fund, Allianz RCM Rohstoffonds, is managed by RCM, part of Allianz Global Investors and Allianz Group, one of the world's top financial services providers. KT-Mining Fund currently does not have policy to hedge foreign exchange risk.
The master fund invests globally into listed companies, which are active in the mining/production of commodities including non-ferrous metals (e.g. nickel, copper, aluminum), iron, other ores, steel, coal, precious metals (e.g. gold, platinum), diamonds, industrial salt and minerals (e.g. sulfur). The fund aims to attain above-average capital gains over the long term. The fund size as of March 3rd 2010 was 1,134.94 million EUR or about 49.68 billion bath. The fund has received an AA-Rating from Standard & Poor’s since 2007. The annualized returns were 17.80% for 5-year and 15.21% for 10-year.
Khun Somchai said that KT-Mining Fund enables investors to take part in the opportunities offered specifically by stocks in the natural resource sector that is essential for the industrialization and development of infrastructure in emerging markets, not limited to China. Global economy is recovering and demand for raw material is likely to continue to grow due to the economic stimulus programs being implemented around the world. The likelihood of supply shortage should give rise to commodity prices. This fund not only can provide a valuable diversification tool for Thai investors who have a large portion of portfolio in bonds, but it can also provide inflation protection since commodities are closely linked to rising prices in essential goods.
Another great reason to invest in KT-Mining is that its master fund is managed by strong investment team who has over 20 years of industry experience in metals and mining sector. They are considered one of the most experienced managers in this sector. Besides talented investment team, RCM has approximately USD 141.6 billion of assets under management (as of December 31, 2009). The company has won many awards including Lipper Fund Award, four awards at the Asia Asset Management awards, and two awards the Asian Investor Investment Performance Awards 2009.
Citibank N.A., as a distributor, by Khun Pavin Rodloytuk, Retail Banking Director said the global economic recovery continues to provide a supportive backdrop for commodity prices in 2010 and 2011. Citi’s economists expect emerging markets to continue to lead the world recovery, growing at an estimated 6.3% and 6.0% in 2010 and 2011, respectively; compared with 2.3% and 2.2% in industrialized countries. On the inflation front, price pressures are expected to remain subdues, especially in G3 where monetary policy tightening is likely to start in 2010 Q4 (in the US) at the earliest. Inflation is more of a concern in emerging markets, and especially in emerging Asia where economic recoveries are stronger. The combination of robust economic recovery and low interest rates continues to provide an attractive backdrop for risky assets generally, and commodity prices in particular.
One of the strategic opportunities for equities investors is global infrastructure, with spending estimated to average US$2 trillion annually through 2015 with more than half to occur in emerging economies where government policies are aimed at driving infrastructure development. “Again this basic materials fund offers investors yet another avenue of long-term growth outside the broader markets. However 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.