Sep. 5--BBL Asset Management next week will launch its Bualuang Target Return Fund (TARGET), a mixed-asset fund targeting returns of 25 percent over three years.

Managing director Voravan Tarapoom said the fund would hold its initial public offering from Sept 8-17. The fund has a registered size of two billion baht, with the minimum investment set at 1,000 baht.

Investors are expected to receive returns of 25 percent on their investment over its 36-month term, she said.

"The investment period for 36 months is an appropriate period and long enough for the market recover from the crisis now. The fund has a flexible investment policy and will adjust its portfolio to match the current situation in the markets," Mrs Voravan said.

The Stock Exchange of Thailand index has fallen nearly 25 percent for the year to date, with losses largely coming over the past four months due to rising political risk.

But Mrs Voravan said he expected the political uncertainties to be resolved within a week, potentially boding well for a rebound in the markets.

With price-to-earnings ratios for the market now at nine to 10 times, and dividend yields relatively strong at 4.5 percent, now was the time to acquire stocks for a medium- to long-term investment, she said.

Earnings growth remained positive while declining oil prices would help margins over the second half.

Mrs Voravan said the sub-prime mortgage crisis and credit crunch would remain a risk factor in the second half, as would local politics, inflation and the prospect of a regional economic slowdown.

"The political crisis, I'm afraid, will have a long-lasting negative impact on the country. No one will win if the situation is prolonged," she said, adding that she believed that political disagreements should be resolved in Parliament.

BBLAM, which had 151.26 billion baht in assets under management at the end of August, would also plan on launching a new retirement equity fund and possibly a property fund over the next several months.

Of the company's 10 equity funds, most have posted losses of 10 percent to 18 percent over a one-year period, but remain positive at 25 percent to 40 percent over three years and over 100 percent on a five-year outlook.

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