Thailand’s recently-launched US$4.5 billion state-controlled Vayupak Fund 1 has already started buying shares and may use equity derivatives in future to protect its capital, the top executive of the fund’s co-investment manager says in an interview with Bloomberg.
Krung Thai Asset Management and MFC Asset Management are co-managers of Vayupak Fund 1.
The fund will “gradually” invest about 90% of its assets in local stocks, Chavinda Hanratanakool, chief executive officer of Krung Thai Asset Management, says in the interview published on October 31.
She says the asset management company is considering expanding its investment team to boost its expertise in equity derivatives, which the fund may use in the future for capital protection.
According to Chavinda, Vayupak Fund 1 is a key part of a broad effort to boost confidence in the local capital market, which has been hurt this year by falling stock prices, worries about household debt and political instability.
She says the plan is for the fund to act as a buffer for stock prices, which are expected to be driven higher by fresh money in the next two years.
“The size of the fund should be sufficient for us to move the market,” she says. “Not to manipulate the market, but to support it.”
Chavinda did not immediately respond to questions from Asia Asset Management.
