Reference is made to the Cabinet Resolutions on 3 November 2015 and 23 February 2016 approving the termination of personal income tax privileges for the amount paid for investment in the Long-term Equity Fund (LTF) on 31 December 2019; and the Cabinet Resolution on 3 December 2019 approving the personal income tax exemption for the income derived from redemption of LTF units from 1 January 2020 onwards in the same manner as the income derived from redemption of investment units of other mutual funds (i.e., the capital gain from redemption of LTF is exempted from personal tax income).
Krungsri Asset Management Company Limited (“the Management Company”) would like to notify you of the amendment to the mutual fund project and/or commitment of the following 10 LTFs which has been approved by the Office of the Securities and Exchange Commission (“the SEC Office”) in order to ensure consistency and/or compliance with the SEC Office notifications pertaining to the expiration of the above-mentioned tax privileges.
1. Krungsri Active SET50 Dividend LTF (KFLTFA50-D)
2. Krungsri Equity Dividend 70/30 LTF (KFLTFEQ70D)
3. Krungsri All Stars Dividend LTF (KFLTFAST-D)
4. Krungsri Thai Small-Mid Cap Dividend LTF (KFLTFTSM-D)
5. Krungsri Thai All Stars Dividend LTF (KFLTFSTARD)
6. Krungsri Dynamic LTF (KFLTFDNM)
7. Krungsri SET50 LTF (KFLTF50)
8. Krungsri Dividend Stock LTF (KFLTFDIV)
9. Krungsri Equity LTF (KFLTFEQ)
10. Krungsri Dividend Stock LTF 70/30 (KFLTFD70)
The main points of the amendment are summarized as follows:
1. Modify the definition of “LTF” to be “the Long-Term Equity Fund established prior to 1 January 2020”.
2. Stipulate that the Management Company can deny the transfer or pledge of the LTF units only those offered for sale before 1 January 2020; except for the case that the investors purchase the LTF units from 1 January 2020 onwards, they are permitted to transfer the investment units without restriction.
3. Cancel the regulation requiring the LTF to send and disseminate the Investor Manual containing the details of tax privileges as the investor’s contributions to an LTF from 1 January 2020 are no longer entitled to a personal income tax deduction.
4. For the LTF units held by investors before 1 January 2020, the Management Company shall record the investment transaction of each unitholder separately according to the date of investment and shall calculate the cost and benefits and deduct the investment amount for each transaction upon redemption or switching-out of investment units based on the first in first out (FIFO) method in accordance with the regulation of the Association Of Investment Companies (AIMC).
5. Delete the statement regarding the reservation of right to change the fund’s name and to amend the mutual fund project to a general mutual fund with the investment policy to invest in equity instruments upon expiration of the tax privileges granted to unitholders.
The amendment to mutual fund project as mentioned above shall be effective from 1 January 2020 onwards.
Should you have any queries, please contact your account manager or our Client Service at 02-657-5757 press 2 or via email at krungsriasset.clientservice@krungsri.com.
Please be informed accordingly.