Reference is made to the joint press conference held by the Ministry of Finance, the Bank of Thailand and the Office of the Securities and Exchange Commission (SEC) on March 22, 2020, which issued a statement on measures for boosting money market liquidity to ensure the normal functioning of the debt market amid the turbulent financial market conditions. These measures can be summarized as follows:

1. Stabilizing prices of debt instruments via bond mutual funds: Commercial banks are allowed to purchase investment units of high-quality money market funds and/or daily fixed-income funds that have been impacted by the decreased market liquidity; such investment units can be used as collateral for repurchase agreement (repo) transactions conducted with the Bank of Thailand. The eligible bond mutual funds are estimated to amount to more than 1 trillion Baht. 

2. Mitigating risk from default of corporate bonds: A Corporate Bond Stabilization Fund has been set up to invest in high-quality, newly issued bonds from corporates that cannot fully roll over their maturing corporate bonds, which will therefore reduce default risk.

3. Stabilizing prices of government bonds: The authorities are prepared to provide liquidity to ensure that the government bond market will continue to function normally and efficiently. 

For the measures to support liquidity of mutual fund bonds via commercial banks that are allowed to purchase investment units of high-quality money market funds and daily fixed-income funds, all mutual funds under KAsset management meet the criteria of this measure implemented by the Bank of Thailand.

With the support of KBank and with KAsset’s long experience and professionalism in fixed-income fund management throughout the past 28 years, KAsset is confident that the company will continue to accept your subscription and redemption orders for investment units, and will not extend the period for redemption proceed payment. We are always on hand to provide convenience to all unitholders as usual

All unitholders can rest assured that KAsset’s fixed-income funds are managed by qualified fund managers who excel in managing debt instruments with appropriate risk management. All fixed-income funds under KAsset management focus on high-quality liquid debt instruments, and none have ever encountered debt default. 

We would like to thank you for your continued trust and confidence in us. We wish to confirm that we will always prioritize unitholders’ benefits in any volatile market conditions.

Mr. Vasin Vanichvoranun 

KAsset Executive Chairman