Mr. Somchai Boonnamsiri, Chief Executive Officer of Krung Thai Asset Management PCL. (KTAM), said that the collaboration with Hua Seng Heng Gold Futures Co. Ltd. and appointed participating dealers to launch of KTAM Gold ETF Tracker: GLD, the first exchange-traded fund in Thailand that tracks the price of Gold ETF, has attracted many investors. The fund’s IPO period was 25-29 July 2011 and it raised over 577 million Baht. The fund is expected to continuously draw more investors after its registration with the Stock Exchange of Thailand because it provides better convenience and liquidity than typical gold mutual funds. Investors can send trade orders through any brokerage firms across the country. The fund will be traded under the ticker: GLD.
State Street Global Advisors Asia Limited explained that Market uncertainty and growing concerns about the U.S. and certain European countries’ debts have increased the demand for gold — as evidenced in the recent gold price gains. During periods of economic and political instability, when the values of other assets fell dramatically, gold remained a store of value, making it an attractive portfolio diversification tool. SPDR? Gold shares provide a precise, transparent and efficient way for gold exposure. Originally listed on the New York Stock Exchange in November of 2004, and traded on NYSE Arca since December 13, 2007, SPDR? Shares have been one of the fastest growing ETFs in the US and is now the second largest ETF in the world. SPDR Gold Shares currently trade on the Singapore Stock Exchange as well as the Tokyo Stock Exchange and the Stock Exchange of Hong Kong.
Julian Liu, President and CEO of Polaris International Securities Investment Trust, Taiwan, “We are very honored to have the opportunity to help and witness the birth of a brand new asset class of ETF listing on the SET. After the listing of the first foreign ETF in Thailand, KTAM was able to offer the domestic investor an easier way to invest off-shore. This is definitely a remarkable milestone and breakthrough for Thailand as both foreign and commodity ETF is now available for Thailand. With the introduction of the Gold ETF, it provides the investor with another asset class which completes the missing link in asset allocation. As the regulation of Thailand continues to liberate, I believe there will be more new types of financial products presented to the market.”
The timing of issuing the Gold ETF couldn’t be better, now that the US Dollar and the macroeconomic outlook for US is weakening, the demand for gold as a way to hedge against the market is increasingly more demanded. I believe the demand for gold will continue to increase and drive the NAV of KTAM’s gold fund higher in the future, Julian added.
Investors can request fund prospectus from any Krung Thai bank and appointed participating dealers such as KT-ZMICO Securities, KGI Securities (Thailand) PLC., DBS Vickers Securities (Thailand), and Hua Seng Heng Gold Futures Co. Ltd.
Investment in mutual funds contains certain risk. Before investing, please carefully study the prospectus of the funds.