The Power Asset Allocation, the first FIF to invest in real estate, will raise funds domestically and invest in other international funds managed by the ING Group.

Fifty per cent of the assets in this mixed fund will be invested in global and Asian equities. Thirty-five per cent will be invested in global and Asian fixed-income funds, 10 per cent in global real-estate securities and 5 per cent in the money market.

Because the assets will be invested in several countries, Maris Tarab, managing director of ING Funds (Thailand), said the fund would occasionally hedge to ease the risk of exposure to foreign currencies.

"Although the US currency has depreciated, the yen and euro are doing well. There might be some gains, a small loss or balance in the overall return in the currency-exchange part. But for the fund itself, the company sees an opportunity to invest abroad and expects the fund to generate at least a 9-per-cent return," he said.

The Bank of Thailand maintains a US$1.3-billion (Bt48.8 billion) cap on the amount asset-management companies can invest abroad.

ING launched an FIF earlier this year and plans to launch another in October.

The initial public offering starts next Thursday and will run until the end of the month.

The minimum investment is Bt10,000.

Investors can purchase at any branch of Standard Chartered Bank or at any ING office.

Piyarat Setthasiriphaiboon

The Nation