Detail Content
Establishment of Mutual Funds
1. Filing an application
A mutual fund management company may submit an application for approval of the establishment of retail fund and mutual fund for accredited investors (AI Funds) under the following provisions:
(1) Investment Policy
The investment policy shall be in compliance with the provisions of the Notification on Investment.
In applying for establishing a mutual fund for accredited investors (AI Fund), the mutual fund management company shall not specify the investment policy with the features of retirement mutual fund (RMF) or exchange traded fund (ETF).
(2) Classification of investment units (Multi-class funds)
The investment units of
a mutual fund may be classified into different classes, provided that the
rights and benefits of the same investment units class are reasonably equally determined. (Classifying investment units by asset types is prohibited.)
The classification of the investment units shall be based on the following
features:
Classification Features
| Examples
|
| Class A
| Class B
|
(1) Fees
or expenses collected from the unitholders
| The unitholders are
institutional investors with a minimum subscription value of one million baht
and management fee at 0.05% of the
NAV.
| The unitholders are retail investors with a minimum subscription value of 1,000 bahtand management fee at 0.1% of the NAV.
|
(2) Offering or redemption
period of the investment units
| Working days
| Once a month
|
(3) Rights
to obtain dividends
| No dividend payment
policy
| With dividend payment
policy
|
(4) Rates
of return from unit investment for the unitholders
| At 3% rate of return
| Rates of return
depending on returns after deducting distribution to class A and receive after
paying to class A
|
(5) Transfer
from a provident fund (PVD) or retirement mutal fund (RMF) (using the
existing RMF rather than establishing a new fund)
| General unitholders
| The unitholders are
investors who transferred from PVD.
|
(6) Any
other conditions as approved by the SEC and such classification is practical
and for the interest of the unitholders in general, as well as taken into
consideration the potential impact on the unitholders of each class.
| | |
(3) Naming a mutual fund
The name of a mutual fund shall not mislead investors about features, types, risks, or returns of the mutual fund and shall comply with the following rules:
1. In case of a mutual fund with investments in infrastructure fund at an average of not less than 80% of the NAV inan accounting period, and must specified name as “ Mutual Fund Investing in Infrastructure fund".
2. In case of a sector fund, the name of the fund shall reflect the specific sectors on which the fund intends to invest.
3. In case of a mutual fund for accredited investors, the mutual fund management company shall specify the statement “not for retail fund " at the end of the name of the mutual fund.
(4) Establishment of fund with special features
(4.1) Guaranteed fund
A guarantee fund arranges for a third party's guarantee to ensure that the investors will receive the guaranteed amount of capital and returns after a specified period. The guarantor shall be a juristic person (not the mutual fund supervisor of that fund) such as bank or financial institution incorporated under a specific law, commercial bank, finance company, securities company (broker/dealer/TSFC) or a foreign financial institution with credit ratings in the first four categories by an approved credit rating agency.
(4.2) Exchange traded funds (ETFs)
An ETF shall comply with the following rules:
Being an open-end mutual fund;
The scheme shall specify a procedure for the offering and redemption of the investment units for high net worth investors, provide an organized market, anddesignate at least one market maker.
For the market maker or the high networth investors trading, the mutual fund management company may accept securities or other assets as payment in lieu of cash. The conditions and procedures must be clearly specified in the scheme.
(4.3) Retirement fund (RMF) shall be an open-end fund only.
(5) Increasing the registered capital and scheme capital.
(1) For a closed-end mutual fund: clearly specified in the scheme before the initial public offering of the investment units.
(2) For an open-end mutual fund: increasing the scheme capital is permissible if the increase and the procedural steps are clearly specified in the scheme.