The Stock Exchange of Thailand (SET) will list KTAM SET50 ETF Tracker, managed by Krung Thai Asset Management pcl (KTAM), on its main board on March 26, under the ticker “ESET50.” The fund offers the lowest management fee among ETFs tracking SET50 in order to give more returns to investors.
ESET50, an open-end exchange-traded fund (ETF), will invest in constituent stocks of the SET50 index, consisting of large-cap companies having high liquidity and market capitalization of a combined THB 9 trillion (USD 277 billion), or 74 percent of the total market cap. The SET50 index’s average return was 6 percent per annum over the last ten years. Since the beginning of this year until mid-March, the SET50 index has increased about 5 percent with dividend yield of about 3.30 percent.
SET Executive Vice President Kesara Manchusree said SET has geared up its 2014 strategy to boost quality products for investors. Therefore, ESET50 would be launched as the first ETF to be listed on SET this year. The ETF invested in 50 constituent stocks of the SET50 index and its dividend policy was to pay up to four times a year. The most outstanding feature of the fund is its management fee, costing only 0.30 percent per year, the lowest fee comparing with the five ETFs tracking SET50 listed on Hong Kong, Japan, Thailand, United Kingdom and Singapore charging 0.45 percent on average. This would benefit investors to receive more returns from the movement of the 50 stocks.
“KTAM is Thailand’s biggest ETF fund management firm. The company has recently received SET Excellence Awards 2014 for best ETF fund management. “ESET50” will be an alternative investment, particularly for beginners as they could get returns following the movement of SET50. Currently, SET has several ETFs generating returns following the movement of indices and meeting various investors’ demands,” Kesara added.
KTAM Senior Executive and Vice President for Property Fund and Private Fund Management Chavinda Hanratanakool said the launch of KTAM SET50 ETF Tracker during March 6-14 was well-received by both retail and institutional investors despite the market’s high volatility during the period. The company could sell more than THB 170 million of ESET50 at THB 93.1770 per unit.
KT Zmico Securities Co., Ltd. and Asia Plus Securities pcl are participating dealers, while Asia Plus is also market maker, and Thailand Securities Depository Co., Ltd. is registar for ESET50. For more information on ESET50, please visit KTAM at www.ktam.co.th and www.set.or.th.