Thai Bourse Joins Capital Market Alliance To Promote Long-Term Funds

The “Let’s Activate Your LTFs” (Long-Term Equity Funds) campaign is aimed at increasing the number of Thai LTF investors to 200,000 by end-2007. The project is a collaboration between The Stock Exchange of Thailand (SET), Securities and Exchange Commission (SEC), Revenue Department, and Association of Investment Management Companies (AIMC).

The first event of the campaign will be “Thai Investors’ Day” (July 1 – 2, 2006), highlighting both LTFs and RMFs (Retirement Mutual Funds). Visitors to Thai Investors’ Day will receive gifts from Thailand Securities Depository Co., Ltd. (TSD) and investment management companies.

Launching the “Let’s Activate Your LTFs” campaign today (June 26, 2006), SET Executive Vice President Mr. Vichate Tantiwanich declared that the endeavor will do more than enlarge the investor base. It will also encourage diversified investments over the long-term, moving beyond the current short-term efforts aimed at gaining tax privileges. The campaign’s first phase will be from July 1 - December 31, 2006, to be followed up with another campaign in 2007.

“Through LTFs, investors can reduce their income tax payment by deducting the investment from their annual income to a maximum of 15% or THB 300,000 each. LTF unit holders must maintain their investment for five years. The anticipated 200,000 LTF investors will bring THB 50,000 million into the market,” the SET EVP said.

People who invest for three consecutive months during July 1 – December 31, 2006 will be able to participate in the activities associated with the campaign. From October 2006 to January 2007, there will be monthly lucky draws, with 100 winners each time. The first draw will be on October 20, 2006. The prize will be an amount equal to that of the third month of their LTF investment (to a limit of THB 10,000).

“LTF investors receive 10 - 37% tax redemption depending on their income level. For example, a person with a monthly average income of THB 70,000 may receive 20%. If they invest THB 100,000 in LTFs, this amount can be deducted from their annual taxable income.

“On the other hand, investing elsewhere may mean having to pay 20% of a THB 100,000 investment (or THB 20,000) in tax. Thus, LTFs enable the THB 20,000 to be counted as a gain,” the SET EVP concluded.

For more information about the “Let’s Activate Your LTF” campaign, and the list of each month’s lucky winners, please visit SET’s website at www.set.or.th, AIMC’s website at www.aimc.or.th, or call the SET Call Center: 0 2229 2222.