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Exclusive: BNY Mellon launches first Thai feeder fund

Exclusive: BNY Mellon launches first Thai feeder fund

BNY Mellon Investment Management Singapore has partnered with Thailand’s One Asset Management to launch its first Thai feeder fund, Singapore CEO Nicolas Kopitsis told Citywire Asia.

Available to both the high-net-worth individual (HNWI) and retail markets, the One Global Short Dated High Yield Bond Fund must invest no less than 80% of its net asset value in the BNY Mellon Global Short Dated High yield bond fund. It is One Asset Management’s only offering in this space.

Offered in two share classes, the I share class aimed at the HNWIs will have an entry level of THB 5 million, while the A share class will have an entry level of THB 5,000.

Kopitsis said the fund’s ability to deliver in the high yield credit market with a lower duration risk is something One Asset Management sees demand for in Thailand.

‘[For BNY Mellon], this is the first of this nature, due to regulation in the region the focus had previously been on institutional business. However, recent changes allow intermediary teams to enter the market and seek opportunities such as that with One AM.

‘The Thai market is a growing market with demand for foreign managers’ expertise,’ he said.

According to research consultancy firm Capgemini, in 2016 the population of HNWIs in Thailand increased by 12.7% to 107,800, while wealth increased by 13.3% to $548 billion.

In fact, last year, Thailand’s equity markets bounced back to post a significant 25.4% gain combined with GDP expansion of 3.2% to further power the Asia Pacific HNWI growth.

Kopitsis said similar to other investors in Asia, Thai investors are looking to diversify their assets to a more global asset base

‘In Thailand, wealth creation is growing and with that the need for increased sophistication and options in products,’ he added.

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