Minimum 50 Baht Gold
Khun Somchai Boonnamsiri, Chief Executive Officer of Krung Thai Asset Management PCL. (KTAM), announced the launch of KTAM Gold ETF Tracker: GLD, the first exchange-traded fund in Thailand that tracks the price of Gold ETF. The fund’s IPO period is 25-29 July 2011 with registered fund size 3,000 million Baht and minimum investment of 10,000 Baht. The fund’s policy is to invest in the units of SPDR? Gold Trust, the world’s largest gold ETF. The fund will register in the Stock Exchange of Thailand on August 8, 2011 with the ticker: GLD.
The fund offers investors the opportunity to obtain return that links to the movement of the master fund that reflects spot gold price after expenses. It provides flexibility of trading on real-time quotes on the stock exchange. The price per unit is approximately 2 Baht and can be obtained instantly without having to wait until the end of the day like other traditional mutual funds. Moreover, Hua Seng Heng Gold Futures Co. Ltd., subsidiary of Hua Seng Heng Gold Smith who has experience and has been trusted in gold business for more than 60 years, is the market maker.
Dr. Pakorn Pitathawatchai, Chief Marketing Officer, the Stock Exchange of Thailand, says that from monitoring the growth in global gold market, he sees positive trend and local investors have great interest in gold investment. The Stock Exchange of Thailand itself will also invest in this GLD fund. This first Gold ETF fund in Thailand by KTAM is expected to generate investors’ enthusiasm in investment referenced to gold price as well as other foreign assets. This is aimed to offer investors with more investment alternatives in order to obtain desirable returns.
Khun Tanarat Pasawongse, Managing Director of Hua Seng Heng Gold Futures, says that he is honored to have the opportunity to work with a team of ETF professionals from KTAM whose hard work and determination have made the first Gold ETF in the Stock Exchange of Thailand become reality. He believes this fund will better facilitate gold investors in their trading than funds with old features. More importantly, for those investors who trade GLD via Hua Seng Heng Gold Futures in the Stock Exchange of Thailand, they have the option to redeem their shares for 96.50% purity gold bar with a minimum weight of 50 Baht Gold from Hua Seng Heng. This is a value added feature on top of the typical cash redemption.
Gold price has been rising continuously especially during the past month as safe haven demand increases amid the possibility of more Federal Reserve stimulus or QE3 after escalating concerns over the European sovereign debt crisis. The uncertainties on the U.S. credit rating will add support to gold price. And if the euro zone debt crisis persists, gold price will remain high.
Investors can request fund prospectus from any Krung Thai bank and appointed participating dealers including KT-ZMICO Securities, KGI Securities (Thailand) PLC., DBS Vickers Securities (Thailand), and Hua Seng Heng Gold Futures Co. Ltd.