ABFTH was established to develop the domestic currency bond market, following the Asian Bond Fund 2 Initiative, established by co-operation between 11 central banks and monetary authorities in the East Asia-Pacific region. This collaboration is known as the Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP).
ABFTH is an Exchange Traded Fund (ETF), and a passively managed index fund. The fund has low risk, as it invests principally in government bonds and debt instruments, and will not invest in derivatives products. The fund, therefore, is suitable for those wishing to invest long-term in a low-risk fund.
“Additionally, ABFTH will provide investors with more flexibility. Investors wishing to invest in the fund can do so conveniently through brokers, as they normally do when investing in stocks. There’s no need to contact the asset management company directly. Therefore, ABFTH’s listing will provide another interesting option for Thai investors, and promote greater retail participation in the Thai bond market, as indicated in the 2nd Thai Capital Market Master Plan,” Dr. Santi said.
ABFTH will be the first listed fund on BEX, which is a subsidiary of The Stock Exchange of Thailand (SET). It’s a fixed income bond index ETF and is an open-end fund. Consequently, no project life is determined. The fund’s units have THB1,000 par value. The fund’s policy is to invest in Thai baht-denominated financial instruments issued by the Thai government or state enterprises. Its policy is to pay dividends no more than twice a year, at no less than 50% of any increase in the net asset value (NAV).
For more information on ABFTH, please visit BEX website, www.bex.or.th, and click on Bond-Related Fund. Alternatively, you can visit the Kasikorn Asset Management website at www.k-asset.co.th. To trade in ABFTH’s unit trusts, please contact any SET member company.
