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The Stock Exchange of Thailand (SET) is accepting tenders from investment management companies interested in being the inaugural manager of Thailand’s first equity exchange-traded fund (ETF). Proposals will be assessed against key criteria of having SET50 Index as an underlying index, the quality and experience of the team, and strength in marketing and education.
SET is seeking responses from members of Association of Investment Management Companies (AIMC) and the Association of Securities Companies (ASCO), who should submit their proposals by December 8, 2006, to enable Thailand’s first ETF can be launched, as planned, in 2007, SET Senior Vice President, Research and Information, Dr. Sethaput Suthiwart-narueput said.
“Tenderers should nominate a team which includes an investment management firm as a fund manager, and a securities firm as a market maker and participating dealer.” Dr. Sethaput added.
The Exchange’s call for tenders follows thorough consultation with five securities firms and 15 institutional investors, including equity funds, balanced funds, government funds, commercial banks and insurance firms. Further input was provided at the seminar: “Launching the first equity ETF in Thailand: issues, obstacles and opportunities”, co-hosted by Securities and Exchange Commission (SEC) and SET in September this year.
Thailand’s first equity ETF is an important policy initiative from SEC and SET, and its implementation will be closely monitored by the Equity Exchange Traded Fund Promotion Working Group.
Details concerning the tender, the ETF project, and general information concerning Thai and international capital markets can be found on the SET website, www.set.or.th/setresearch
