Through a press conference held on 22 March 2020, the Ministry of Finance, the Bank of Thailand (BOT), and the Securities and Exchange Commission (SEC) have promulgated necessary measures for mutual funds impacted by a lack of liquidity in the financial market with an aim to continuously support the economic stability. In such circumstance, we, Krungsri Asset Management, would like to reassure that the investment units of all money market funds and daily fixed income funds under our management are eligible to be used as collateral for liquidity support from the Bank of Thailand under this special facility.
With the support from Bank of Ayudhya, our parent bank with a strong financial status, and such measures from the government sectors together with our fund management policy focusing on high-quality fixed income instrument investment through a selection process with prudent data analysis and low volatility of NAV as well as sufficient liquidity management for redemption, which is supported by comprehensive and ongoing monitoring and evaluation of the situation.
Therefore, we have strong confidence in managing our funds to maximize the interests of our investors as we have always done and we would like to insist that we will neither stop accepting investment unit subscription and/or redemption orders nor postpone the redemption date. At the same time, we are ready to provide you with all relevant information and convenience with our utmost effort.
Closure of fixed income funds by some asset management companies is subject to the liquidity management of each fund in response to units’ redemption but not related to the default risk. Besides, such incident does not impact the confidence in instrument quality and overall fixed income funds’ management among industry.
However, we believe that rational investment decision with low sensitivity to short-term market situation is a key factor to help investors overcome these challenges. Moreover, fund units’ redemption when it comes to high volatility of NAV may result in a loss in principal and opportunity to gain good returns in the future from high-quality fixed income instruments in the portfolio, which is supported by potentially long-term low interest rates.
We would like to extend our sincere gratitude for your trust in our fund management and we are determined to adhere to the prudent fund management with our utmost efficiency by taking into account the investors’ benefits in order to justify your long-standing trust.