Siam Commercial Bank's asset management arm is planning to launch a capital protected fund with growth linked to gold as part of an initiative to grow its assets in the coming year.
SCB Capital Protected Gold Complex Return Fund 1 is a 12-month fund being marketed to Thai investors this week that aims to return 4.5%. The fund will invest in Thai government bonds for capital protection and buy gold options based on London's afternoon trading session. The fund is expected to raise $65m.
The firm's president Jotika Savanananda told local journalists that SCB Asset Management will be marketing low risk and fixed income funds to SCB deposit holders, hoping to target in part the THB100bn ($3.24bn) of South Korean bond funds that are due to mature this year.
Also in 2011, SCB will choose 180 branches of its banking network to distribute higher and moderate risk funds. The bank's branches have hitherto only sold low risk funds. Within three years it expects to grow this number to 1,000 branches.
SCBAM recorded AUM of THB564bn ($21bn) last year, up 13.4% from 2009.
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