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The Stock Exchange of Thailand (SET) and One Asset Management Ltd. have launched ThaiDEX SET50 ETF, Thailand’s first-ever exchange-traded fund (ETF). All systems - trading, payment, settlement and information – and regulations are in place for the IPO from August 21 to 29, 2007. Trading opens on September 6 and both parties are confident that the fund will be well-received by institutional and retail investors.
The collaboration between the Securities and Exchange Commission (SEC), SET, the Bank of Thailand, Thailand Securities Depository and One Asset Management Ltd. has been crucial in introducing the nation’s first equity ETF. By providing an alternative and attractive investment tool for the public, and creating new business opportunities for asset management companies, securities firms and commercial banks, this product denotes an important stage in the Thai capital market’s development, SET President Ms. Patareeya Benjapolchai said.
“The market is evolving into a comprehensive investment center, with attractive financial products, professional service and up-to-date systems - and able to compete regionally and internationally. The second Thai Capital Market Development Plan and SET’s strategic plan have charged the Exchange with the mission of becoming a regionally important and complete secondary market, with a variety of quality products - such as this one,” Ms. Patareeya stated.
Because of its liquidity, real-time price quotation and the availability of market-makers, ETF will attract institutional and retail investors, particularly those who want to invest in the stock market and minimize risk. For institutional investors, the product offers more efficient asset management. Furthermore, the fund’s trade commission is only 0.10% of trading value, Ms. Patareeya added.
Globally, ETF’s managed assets have grown at a compound annual rate of 70% - almost doubling each year since 1993. In May this year, ETF’s total worldwide asset value was THB 22 trillion. Most Asian stock markets, such as Korea, Taiwan, Singapore and China, trade this product.
“One Asset Management and its team would like to thank the SEC and SET, who are the initiators of Thailand’s first SET50 ETF. Since the Exchange chose One Asset Management to establish and manage the country’s first equity ETF, the firm and SET have been educating securities companies’ marketing officers and the public in preparation for its introduction,” One Asset Management Ltd.’s Managing Director Dr. Somjin Sornpaisarn said.
ThaiDEX SET50 ETF combines the strength of securities and mutual funds and is an open-ended, SET-registered fund. It can be traded like stocks, and is based on the SET50 index. The basket-of-securities system, used by ThaiDEX SET50 ETF, will undoubtedly make trade even more convenient, easy and responsive for both institutional and retail investors.
“ETF has some special characteristics, such as real-time trading through any securities company, and One Asset Management as fund manager, whose task is to beat the underlying index. KGI Securities PCL will be the market-maker, responsible for creating liquidity and making the fund attractive to investors. KGI Securities PCL, Kim Eng Securities (Thailand) PCL, Thanachart Securities PCL, Bualuang Securities Co., Ltd. and Citigroup Securities Co., Ltd. are participating dealers in the fund. Anyone wishing to invest in ThaiDEX SET50 ETF can do so with a minimum of THB 5,000 through any of the five participating dealers, Siam City Bank PCL and appointed securities companies, from August 21 to 28.” Dr. Somjin added.
ThaiDEX SET50 ETF will be listed on SET in the Unit Trust group with the symbol of “TDEX”.
