Funds focused on natural resources give positive returns to investors

The fund was established late last year and its policy is to invest in the equity of overseas companies engaged in the business of natural resources.

I-Natural's return outperformed the Thai stock market, which fell 10 per cent in the first six months, and beat the average inflation rate of about 6 per cent in the same period.

TMB Gold Fund ranked second, offering an 8.92-per-cent return between January and June. However, the fund in June alone provided the most attractive return among funds sold in Thailand at 7.59 per cent, compared with I-Natural at 4.65 per cent.

Thanachart Infrastructure & Natural Resource is another equity fund that yielded positive returns to trust holders for the first half at 1.52 per cent, Suthee said.

Unsurprisingly, other equity funds in the period performed more poorly as a result of sagging stock markets around the world.

Of the bottom-performing equity funds, TMB China Equity Index lost 41.58 per cent, Tisco China India Dividend 33.3 per cent, UOB Smart Greater China 29.31 per cent and UOB Smart Asia 26.07 per cent.

In June, the lowest returning equity funds were TMB China Equity Index and Tisco China India Dividend with losses of 13.34 per cent and 12.37 per cent, respectively.

The report stated that Phillip Long Term Equity was the top performing of long-term equity funds (LTFs) in the first half at 3.6 per cent, followed by BT Life 70 Long Term Equity Dividend at 2.7 per cent and 1 AM Smart Long Term Equity at 2.45 per cent.

MFC Islamic Long Term Equity was at the bottom end among LTFs in the period with a loss of 15.26 per cent. Wealth LTF was the second worst with a 14.96-per-cent negative return, followed by MFC Global Long Term Equity at 12.06 per cent, K Equity LTF at 11.37 per cent and Equity Pro LTF at 11.31 per cent.

"Because of the unfavourable equity market investment climate in June, the performance of LTFs fell sharply, with a 6.49-per-cent average loss," Suthee said. "Only two of the 53 funds - Phillip Long Term Equity (4.91 per cent) and 1 AM Smart Long Term Equity (1.78 per cent) - remained in positive territory. The laggards were Wealth LTF and K Equity Dividend LTF, with negative returns of 12.65 per cent and 10.17 per cent, respectively."

Only 10 retirement mutual funds (RMFs) in January to June offered positive returns to trust holders, and all of them invested in bonds and the money market.

NASSET General Fixed Income RMF was in the top-performing range among RMFs with a 3.28-per-cent return, followed by Krung Thai Tax Planning RMF 2 at 2.99 per cent, Krung Thai Tax Planning RMF 3 at 2.92 per cent, NASSET Government Bonds RMF at 2.5 per cent and AYF Government Bond RMF at 1.89 per cent.

For the laggards, Tisco China India Retirement lost 33.5 per cent, K Flexible Equity RMF 10.98 per cent, TMB SET50 RMF 10.89 per cent, AYF SET100 RMF 10.82 per cent and K Equity RMF 10.22 per cent.

The increase in inflation concerns and the fallout in the domestic stock market in June pressured the performance of funds investing in both equity and fixed income, Suthee said.

"In June, the overall returns of RMFs were frustrating, and only money-market funds - having a cushion from short-maturity fixed income portfolios - could survive, showing a positive return of 0.18 per cent on average. Equity funds, mixed-asset funds, and bond funds all ended in the red at minus 6.77 per cent, minus 5.18 per cent, and minus 0.56 per cent, respectively," he said.

"The outperforming RMFs in June were money-market funds: NASSET Money Market RMF, with a 0.25-per-cent gain, and AYF Cash RMF, with a 0.23-per-cent return. The lowest-returning RMF was Tisco China India Retirement, with a negative return of 12.62 per cent."

Tisco Australia Bond was the best-performing bond fund in January to June with a 12.42-per-cent return. PrimaVest (Thailand) Emerging Markets Bonds, MFC Global Opportunity Bond and K Global Emerging Market Bond yielded 4.7 per cent, 3.09 per cent and 2.73 per cent, respectively.

At the bottom end, Krung Thai Emerging Bonds Market gave a minus 12.21-per-cent return, AYF Global Convertible Bond minus 8.39 per cent, K Government Bond 3/56 minus 2.45 per cent and ING Thai Asian USD Bond minus 0.98 per cent.

Four bond funds managed by Tisco Asset Management were the top four best-performing bond funds in June.

Tisco Australia Bond yielded 4.81 per cent, Tisco Australia Bond 3 4.8 per cent. Tisco Australia Bond 2 4.78 per cent return and Tisco United Kingdom Bond 4.52 per cent.