TMBAM Eastspring closes bond mutual funds

TMBAM Eastspring announced on Thursday (March 26) that it had closed down two mutual funds, Thana Permpoon and Thana Paiboon, to avoid further losses to the investment of unit-holders.

“As a fund manager company, we have cancelled all transactions effective Wednesday (March 25), and will not sell, purchase back, change an investment unit of the two mutual funds” it said.

Many investors have sold their investment units of the two mutual funds for cash as the Covid-19 outbreak intensifies, up to over 50 per cent of each funds’ total.

With low liquidity in the domestic bond market, the continuous sell-off would lead to financial damages for investment unit holders.

The TMBAM announcement came after the Bank of Thailand introduced credit facilities to support liquidity of bond mutual funds, but the lending facilities cover only local bonds.

The two funds largely invested in foreign debts with investment grade and over 70  per cent of them had A-minus ratings.

https://www.nationthailand.com/news/30384889

Author: youmakestate