Overview of Private Funds Managed by SCBAM
Private Fund is a service for managing the investing capital of a client, namely individual, group of persons and juristic persons, who appoint the Asset Management Company to act as a fund manager on their behalf. In this regard, the clients are able to specify an investment policy, investment objective and investment limitations under their own acceptable risks in order to achieve highest expected returns.
The Asset Management Company will be responsible for an asset allocation, securities selection and market timing under agreeable investment policy and limitations, which, in turn, enable the investment platform to be highly flexible and adjustable to match each client’s requirements.
In this connection, the client’s invested assets in private fund are held under the client’s name by the Asset Management Company to present the right in managing such client’s assets. The Income tax associated with investment return will be in accordance with a client’s taxable status. For instance, an individual will be taxed the Personal Income Tax, while a juristic person will be taxed the Corporate Income Tax.
After the Asset Management Company begins managing the investing capital, it shall appoint the Custodian approved by the Office of the Securities and Exchange Commission acting as agent to safekeep the private fund’s assets under its custody, as well as to monitor arising incomes from private fund investment.
Type of the Investable Assets
An investor can invest in a bank deposit, government bond, debenture, equity, mutual funds, property funds and infrastructure funds, also derivatives and other alternative investments, such as, structure notes both domestic and foreign.
The Associated Fees
- The Management Fee for managing a private fund calculated on a percentage per year of the Net Asset Value.
- The Custodian Fee
- Other Fees, such as the stamp duty, the brokerage fees or the audit fees (if any).
The differences between a Private Fund and Mutual Fund
Highlight of the Private Fund
- Participating in specifying the investment policy as per client’s requirements and be timely adjustable in accordance to cope with various situations
- Reduction in investment burden resulting in more convenience and time saving for investment planning and monitoring including securities trading and accounting
- Professionally managed asset by seasoned portfolio manager who can get access to timely market information in the investment space
- Appropriate portfolio’s risk diversification under client’s acceptable risks
- Getting access to wide range of investable securities both domestic and foreign including new investment vehicle
- Higher bargaining power from size of asset under management leading to superior beneficiary to client
- Systematic and accurate investment management which clients can closely monitor and receive daily reporting
Overview of Private Fund Service of SCB Asset Management Co., Ltd
As of 31st October 2017, the SCB Asset Management Company Limited (SCBAM) has ranked the 1st in the private fund management industry which contributes 43.7% market share with assets under management at 357,546 million Baht. (Remark: 1. Source: www.scbam.com / 2. The past performance of mutual fund does not guarantee the future performance.) SCBAM serves various types of client such as, government agency, academic institution, insurance company, foundation, saving co-operative and corporation, including individual high net worth client.
Diagram for the operation of the private fund by SCBAM
Why choose private fund service with SCBAM?
- SCBAM has an expertise in serving government agency, corporation and wealth banking clients.
- SCBAM, supported by the strength of SCB Group and partners, gets access to wide range of investable securities both domestic and foreign including new investment vehicle
- An individual who invests in foreign instruments via a private fund channel of SCBAM has a flexibility in managing the currency risk by fully hedging foreign exchange risk.
- SCBAM has ranked the 1st with the largest market share in the private fund business and has a predominant bargaining power enabling it to seek the best execution for greater benefits to clients
- Generating consistent investment returns for clients through the transparent and effective procedure in managing investment and risk mitigation, reflected by several awards and rated by Fitch ratings
- Reasonable management fee
Client Type and Form of Private Fund
- Individual client starts at an initial fund of 10 million Baht
- Institutional client starts at an initial fund of 100 million Baht
Private Fund Servicing by SCBAM
- SCBAM manages the private fund under an investment policy and limitation as set forth in the agreement by an appointed fund manager.
- SCBAM has marketing officers for servicing clients particularly in investment planning and facilitating client requests.
- SCBAM submits a monthly report to the client, consisting of investment performance, NAV, securities trading report, financial statement for the institutional client.
- SCBAM keeps update portfolio performance and prospect fund management approach with clients on a regular basis.
- SCBAM provides Private Fund Online Service, whereby the clients can access to a fund management report and performance report daily.
The Investor Classification by Acceptable Risk Level
A level of risk acceptable by an investor can be fundamentally classified in major group as follows:
- Conservative Investor: low or almost none risk tolerance. The investment focuses on capital protection; therefore, it will emphasize on securities with low to medium risk level.
- Moderate Investor: medium risk tolerance. The investment focuses on higher returns and capital appreciation; therefore, it will emphasize on securities with medium to high risk level.
- Aggressive Investor: high risk tolerance. The investment focuses on higher returns and expects a growth opportunity with total return; therefore, it will emphasize on securities with high risk level.
Diagram showing Results of Risk Assessment
SCBAM will design client’s portfolio to be in accordance and appropriate with the risk and investment limitation. The asset allocation model depends on the client’s risk level of which the service provides in 3 platforms:
- Fund of Funds Platform is an investment in a private fund through a mutual fund of SCBAM. It focuses on generating returns higher than the benchmark within the client’s risk level via managing and adjusting portfolio weight by professional fund managers in accordance to dynamic change of economic and investment condition. It will be less burden to a client in monitoring and following up the market condition.
Diagram described the Fund of Funds Platform
- Structured Product & Offshore Investment is a sophisticated investment, which is complicate or difficult to access by general investors, through foreign partners and global asset management companies allied with SCBAM, such as:
Remark: This article is arranged by SCB Asset Management Company Limited, whereby the fund managers referred herein do not relate to any information presented in this article.
which will be a choice of investment to enhance returns and to elevate a risk diversification of the client’s investment portfolio. By investing in the structured product & offshore investment through a SCBAM private fund, the client will have a flexibility in managing the foreign currency exposure, where a direct investment in those assets is not possible.
The Structured Product & Offshore Investment
- Tailor-Made Mandate is an investment in a private fund where the client participates in specifying the investment policy, investment objective and limitation specially, such as, a restriction on investment proportion of each asset class, a prohibited sector or industry to invest, credit rating of fixed income instrument or other restrictions, which a governmental agency with regulatory authority specifies as an investment framework to suit investment requirement from each client.
The Tailor-Made Mandate
For more information, please kindly contact to get exclusive investment experience at SCBAM Call Center 02-777-7777 press 0 press 6 or email to Private & Institutional Business Group via email: email@example.com
Remark: The past performance of mutual fund does not guarantee the future performance. / Investor should well understand natures, conditions, a return and associated risks before making any decisions.