Amendment to Fund Project of Krungsri Asian Equity Hedged FX Fund (KFHASIA)

1 December 2021
Krungsri Asset Management Company Limited (“the Management Company”) has been the manager of Krungsri Asian Equity Hedged FX Fund (KFHASIA) (“the Fund”), which have the policy to invest in Vontobel Fund - mtx Sustainable Asian Leaders (ex Japan) (Class I) (“the Master Fund”) since inception.

The Management Company has pursued the monitoring and evaluation of the performance of the Master Fund for a certain period of time and found that the Master Fund did not generate satisfactory investment returns compared to other funds. By virtue of Clause 3.11 of the Mutual Fund Project regarding "Details of the Investment Policy and the Special Characteristics of the Fund", the Management Company reserves the right to change the Master Fund to any other foreign fund, which may or may not be the fund under management of the existing foreign fund management company in case that investing in the current Master Fund is no longer appropriate.

Accordingly, to ensure best interests of the investors, the Management Company proceeds to amend the mutual fund project and an approval has been granted by the Office of the Securities and Exchange Commission (“the SEC Office”).  The Master Fund of the Funds will be changed to Baillie Gifford Pacific Fund (Class B Acc), a foreign fund with similar investment policy and objective, which has been established since 17 March 1989. The new Master Fund is managed by Baillie Gifford & Co Limited and incorporated in United Kingdom with GBP 3,833.13 million worth of assets under management as of 31 October 2021.

Due to the changes of investment in the Master Fund as mentioned above, the Management Company has changed the Fund Supervisor accordingly to allow more flexibility in and provide better benefits to fund management after obtaining approval from the SEC Office. The important amendments to the mutual fund project are summarized in the attached table.

The amendments to the mutual fund project as mentioned above shall be effective from 15 December 2021 onwards. 

In this respect, the Management Company may issue a new passbook indicating Standard Chartered Bank (Thai) PCL as the Fund Supervisor to the Unitholders as from 15 December 2021.

Notwithstanding, Unitholders can still use the old passbook having the name of Siam Commercial Bank Public Company Limited as the Fund Supervisor for undertaking the subscription, redemption and switching transactions until it is used up completely.

Should you require any further information, please contact your account manager or our Client Service at 02-657-5757 press 7 for English and 2 or via email at krungsriasset.clientservice@krungsri.com.

Please be informed accordingly.

Summary of the major amendments to the mutual fund project of Krungsri Asian Equity Hedged FX Fund
  • Changes of Investment in the Master Fund
Old New
1. Name of Master Fund
Vontobel Fund - mtx Sustainable Asian Leaders (ex Japan), which is registered and traded in Luxembourg. Baillie Gifford Pacific Fund (Class B Acc), which is registered and traded in United Kingdom.
2. Name of Management Company
Vontobel Asset Management S.A. Baillie Gifford & Co Limited
3. Investment Objective and Policy of Master Fund
The Fund aims to generate long-term capital growth and seeks to promote environmental or social characteristics by employing a number of safeguards and evaluating all investments against sustainability criteria with hard thresholds required to be met for inclusion. The Fund is categorized as Article 8 SFDR. 
The starting investment universe is the Asia (ex Japan) equity markets. “mtx” is the sustainable equities team of the Investment Manager. 
While respecting the principle of risk diversification, the Fund's assets are mainly invested in shares, equity-like transferable securities, participation certificates, etc. issued by companies that are based in or conduct the majority of their business activity in Asia (excluding Japan) and that include environmental or social characteristics in their economic activities. 
The Fund may invest up to 35% of its assets via Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect in China A-Shares. 
Up to 33% of the Fund's assets may be invested outside the aforementioned investment universe. The Fund may also hold cash.
The Fund aims to outperform (after deduction of costs) the MSCI AC Asia ex Japan Index, as stated in sterling, by at least 2% per annum over rolling five-year periods.
The Fund will invest at least 90% directly or indirectly in shares of companies in Asia (excluding Japan) and Australasia, being those which are listed, incorporated, domiciled or conducting a significant portion of their business in Asia (excluding Japan) and Australasia. The Fund will be actively managed and will invest in companies of any size and in any sector. The indirect investment will be through collective investment schemes (including those managed or operated by the ACD).
To the extent that The Fund is not fully invested directly or indirectly in shares of such companies, the Fund may also invest in other transferable securities of companies in Asia (excluding Japan) and Australasia, money market instruments, deposits and cash. The Fund may not invest in or otherwise use derivatives.
However, the Fund has an investment strategy in accordance with the principles of sustainable investment by taking into consideration the elements of ESG investing - environmental, social and corporate governance - in the investment process.
4. Country Base for Order Processing
Luxembourg United Kingdom
5. Master Fund’s Base Currency
USD GBP
6. Benchmark of Master Fund
MSCI AC Asia (ex Japan) net TR USD MSCI AC Asia ex Japan Index

The Management Company will use MSCI AC Asia Ex Japan Gross Return GBP Index in GBP currency adjusted with the cost of foreign exchange hedging to compare with the Baht equivalent as at the date of calculation of return as an indicator to assess performance of the Fund which is in line with the benchmark of the new master fund.
  • Changes of the Fund Supervisor
Old New
Name, Address and Telephone Number of the Fund Supervisor and the Custody of the Fund
Siam Commercial Bank Public Company Limited  
Address : 9 Ratchadaphisek Road, Chatuchak District,  Bangkok 10900, Tel. 0-2128-2316
Standard Chartered Bank (Thai) Public Company Limited
Address : 100 North Sathorn Road, Silom Sub-district, Bangrak District, Bangkok 10500, Tel. 0-2724-3377

In addition, the change of investment in the Master Fund has resulted in shortening the payment period of redemption proceeds from 5 working days after the execution day excluding relevant Master Fund's holidays (T+5) previously to 4working days after the execution day excluding relevant Master Fund's holidays (T+4), which will also take effect from 15 December 2021 onwards.
To download Adobe Acrobat Reader Click Here free of charge.

Back

Investing in Krungsri Asset Funds

We have offered a variety of funds for investors with different risk profiles.