Earlier, SEC conducted a public hearing on the principle of understanding investment in leasehold funds and funds with revenue sharing agreements and the fund/trust disclosure of investment return. Most of the respondents expressed agreement with the principle proposed.

Therefore, SEC has drafted a notification requiring asset management companies and trust managers which make a projection of investment returns must disclose the internal rate of return (IRR) to give investors information about both short-term and long term returns they expect to get before making an investment decision.

For property fund (Type1) which currently is not allowed to make an investment, if invest only in leasehold properties, asset management companies must disclose an estimated IRR in the annual report and the annual registration statement of the fund.

In addition, asset management companies and trust managers are required to disclose the latest asset appraisal report and appraisal review report within 30 days from the completion date of the appraisal and the appraisal review to provide both investors and analysts information to analyze the fund/trust. The disclosure shall be made through appropriate channels such as through publication on the websites. Information in the summary portion of the fund/trust shall be revised to make it concise and easy to understand. A summary of cash flow which the asset appraiser has prepared must also be attached to the disclosure form.

The consultation paper can be found at https://www.sec.or.th/TH/Pages/PB_Detail.aspx?SECID=598. Stakeholders and interested parties are welcome to give comments and suggestions via SEC’s website, or facsimile at 0-2263-6109 or 0-2033-9570, or email: sorawisn@sec.or.th or kanapart@sec.or.th. The public hearing ends on 22 February 2020.

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