FUND MANAGERS UNFAZED BY RED'S RALLY

       Fund managers believe the red-shirt protest this weekend will be peaceful and not have a negative impact on the stock market, and that Asian stock markets are promising for investors. Vana Bulboon, CEO of UOB Asset Management, said the current global economic recovery would positively impact the Asian market. Financial institutions in Asia have been least affected by the global financial crisis, and so the Asian economy will turn around the soonest.
       He believes the political situation in Thailand as well as the redshirt protest due on Sunday will not lead to further violence, and that foreign investors can be expected to understand the situation very well.
       "There has been a problem for a long time in Thai politics, and foreigners already know about this. But once the situation settles well, I believe foreign investors will invest more in the Thai market," Vana said.
       Jotika Savanananda, president of SCB Asset Management, also believes the red shirts' demonstration will not lead to any violence or affect economic activity. The country's political problems have built up over a long time and are well understood by foreign investors, she said.
       "I believe the redshirt protest won't affect investment in the capital market right now," Jotika said.
       She added that the local stock market was currently strong enough, with Thai economic indicators showing signs of recovery in line with a global recovery.
       She said the economy next year is expected to record positive growth. The Bank of Thailand yesterday forecast grossdomesticproduct growth for 2010 at 4.55 per cent.
       Meanwhile, UOB Asset Management recently launched the UOB Smart Asia Recovery fund, with the main focus in bigcap stocks in Asia. It invests 37.5 per cent in China, 25 per cent in Singapore, 18.75 per cent in Hong Kong, 12.5 per cent in Taiwan and 6.25 per cent in Thailand.
       The SCB Asian Emerging Market Fund has invested in Asian stock markets, with emerging markets so far generating satisfactory results - and a high investment proportion in Thailand.
       The returns in the three and sixmonth periods to August 25 were 16.36 per cent and 69.28 per cent, respectively. The net asset value was at Bt6.8052 per unit as of August 25.