Published On: Thu, Oct 8th, 2009

Thai Bourse Supports Establishing FTSE SET Index ETF

On June 22, 2009  the ThaiDex FTSE SET Large Cap ETF, or TFTSE, is the third ETF of the Thai capital market, and will have its IPO in late-July. This ETF is supported by The Stock Exchange of Thailand (SET) and established by One Asset Management Ltd and co-managed by KGI Securities (Thailand) PCL.

“The FTSE SET Large Cap ETF is a major development in using the FTSE SET Index Series to issue a new financial instrument. TFTSE will be the first ETF that has FTSE SET Index series as its underlying asset and will be the third ETF listed on the Thai bourse. TFTSE reflects SET large cap stocks,
consisting of the selected 30 stocks with the highest market capitalization
that are appropriate to use as a benchmark for large cap stock investment in
Thailand. SET has strong confidence that the FTSE Large Cap ETF will receive
great attention from investors and help increase product variety to
effectively respond to investor needs,” revealed SET President Patareeya

“TFTSE is an open-ended fund with the FTSE SET Large Cap Index as its
underlying asset. The fund has KGI Securities (Thailand) PCL as market maker
and other six securities firms as participating dealers: Bualuang Securities
PCL, Citicorp Securities (Thailand) Limited, KGI Securities (Thailand)
PCL, Kim Eng (Thailand) PCL, Thanachart Securities PCL, and Tisco Securities
Co., Ltd.,” said Dr. Somjin Sornpaisarn, Managing Director of One Asset
Management Ltd.

“TFTSE’s value will be calculated on a real-time basis, and investors can
trade TFTSE like a stock on the Thai bourse. TFTSE has diversified its
investment among 30 stocks, with 35% from banks, 25% from oil and gas, and 9% from mobile telecommunications. TFTSE suits investors who need to
manage their risk from stock investment. It increases diversification of
products, attracting new investors and stimulating trading,” said Mr. Somjin.

ETF is popular overseas, with swift and sustained rises in asset under
management. Worldwide, over 3,300 ETFs are listed, with a total asset of THB35 trillion altogether. An ETF is an efficient type of investment, helping
investors manage their portfolio under low cost, while having high liquidity
and ease of trading. The Securities and Exchange Comission (SEC) is currently
considering TFTSE’s application for approval to be established and managed by One Asset Mgt. Its IPO should be in late July.


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