Thailand’s asset management industry is voted the third best in the world, according to a global investor survey, behind US and South Korea

Thai fund industry ranked 3rd in the world

The Nation May 17, 2013 2:05 pm

Thailand’s asset management industry is voted the third best in the world, according to a global investor survey announced today by the Securities and Exchange Commission. Thailand follows the US and South Korea. It scores well in terms on regulatory framework and tax structure and improvement in selling activities and intermediary role. Yet, Thailand still has to improve some areas, particularly the information disclosure. Morningstar’s survey covers investors in 24 countries, ranked Thailand at the “B” level, putting it on par with the Netherlands, Singapore and Taiwan. This is chiefly thanks to tax incentives like capital gain tax waiver and tax deduction on investment in long-term mutual funds.This raised the scores in the regulatory and tax category above the average level. However, some limitations need to be addressed, like the ones on local funds’ overseas investment and the direct offering of overseas funds to Thai investors. In the fee and expense category, the scores are higher than the average., as most funds do not levy fees on unit trust transactions. In the disclosure category, Thailand wins a moderate score. Absent from Thai funds’ prospectus are trading cost, the names of fund managers and their experiences as well as investment data of the funds under the managers’ control. Thailand scores the lowest points in the selling and intermediary category, though the 2013 result is better than the previous year. Most funds are now sold via bank branches, limiting access for some investors. Less than 20 per cent of mutual funds is sold through non-bank channels.  “The research reflects the continued development in the Thai asset management industry. There is still much to be done, though,” said SEC Secretary-General Vorapol Socatiyanurak.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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