FRIDAY BUG
To the winners go the spoils - others miss out
A few years ago, merger and acquisition activities were a hot issue in financial circles. Now the trend has changed to private banking.
The idea of managing the financial affairs of rich people is enough to get any banker salivating. Some reports suggest that there are 10,000 private bankers needed across Asia to meet the growing demand.The private-fund business in Thailand is also a big money spinner and both banks and asset-management firms love to get in on the act. The Government Pension Fund (GPF) has recently become the jewel in the crown for fund managers. It's not just the huge assets each fund manager gets to play with, but the enhanced reputation each would earn as a reward for good performance. Last Monday, the GPF officially assigned Bangkok Bank and six asset-management firms - Aberdeen Asset Management, ING Funds (Thailand), Kasikorn Asset Management, MFC Asset Management, One Asset Management and Tisco Asset Management - to manage Bt54.6 billion of its total Bt305.78 billion in assets. During their three-year contracts, each fund manager must outperform both equity and fixed-income markets while following the minimum requirement set by the GPF. No doubt these financial institutions have achieved greater credibility after being screened and then selected by such a strong and careful client. However in the quarterly evaluation by the GPF, if anyone fails, the sweet taste of recent success will be a bitter pill to swallow.
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