KTAM opens another alternative to investing in gold KT-Precious invests in leading gold and precious metals companies around the world

Khun Somchai Boonnamsiri, Chief Executive Officer of Krung Thai Asset Management PCL., announced the company will launch the IPO of KTAM World Gold and Precious Equity Fund (KT-Precious) during November 10th – 17th, 2010. KT-Precious on average will invest at least 80% of its Net Asset Value in the master fund, Franklin Gold and Precious Metals Fund. The master fund is managed by Franklin Advisers, Inc., a wholly-owned subsidiary of Franklin Templeton Investments with $600 billion asset under management (as of August 31, 2010). The master fund invests in the securities of companies around the world that mine, process or deal in gold, platinum, palladium and silver. The master fund’s management team is the team that has been managing one of the oldest and largest gold focused mutual funds in the United States. Khun Somchai added this fund is attractive because of the opportunity to get return from investing in gold and precious metals stocks instead of directly investing in gold commodity. These stocks have a high correlation with the return of their underlying assets, but do not come with the high transaction and storage costs. In addition, investors will benefit from company specific value drivers, such as the development of new mines, production growth and exploration successes. Regarding long-term investment return, gold demand will continue to outpace supply. As a result, gold price is likely to soar in the long-term especially in the emerging markets. Therefore, gold and precious metals operation companies should be attractive in the long run. Citibank N.A., as a distributor, by Khun Pavin Rodloytuk, Retail Banking Director said gold benefited from the prospect of additional monetary expansion/QE measures by the US Fed and other major central banks. The key implication of the QE measures is that major currencies (particularly the USD) are likely to lose value relative to ‘alternative’ currencies such as gold. Gold's traditional disadvantage (no yield) is largely reduced in a zero interest rate world. But its major advantage (limited supply) is massively enhanced, as Central Banks expand the paper money supply with further QE. Thus, despite the recent sharp rally in prices and stretched net long positioning in futures, gold could rise even further given these renewed tailwinds. Note also that the recent ‘safe-haven’ demand for gold still holds, as there are significant tail risks to the global economy. We have revised our short and medium-term forecasts upwards to $1450/oz. We expect the prices to rally further short term however as the global recovery gains traction and policy actions start being unwound, gold prices may be vulnerable. “Again this is one of the interesting ideas investors should always have a disciplined approach to reviewing their portfolio and making investment decisions that reflect their objectives and risk appetites” Khun Pavin concluded.

• ข่าวFranklin Templeton
• ข่าวthe company
• ข่าวo:eco
• ข่าวo:fin
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