Corporate Environment and Social Responsibility (CESR) in Thailand
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Corporate Environment and Social Responsibility (CESR) in Thailand MFC Asset Management plc. 20 June 2006. Tsunami Recovery Fund. The Effects of the Tsunami. Ranong Phang-nga Phuket Krabi Trang Satun Total of 53,203 people or 12,293 households. The Effects of the Tsunami. Social.

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Corporate Environment and Social Responsibility (CESR) in ThailandMFC Asset Management plc.20 June 2006



The effects of the tsunami
The Effects of the Tsunami Thailand

  • Ranong

  • Phang-nga

  • Phuket

  • Krabi

  • Trang

  • Satun

    Total of 53,203 people

    or 12,293 households


The effects of the tsunami1
The Effects of the Tsunami Thailand

Social

Economic

Environmental

Affected 2,293 Household

Fishing

Beaches

Lost home

Tourism/Hospitality

Coral reef

Lost job


Tsunami recovery fund specifics
Tsunami Recovery Fund Specifics Thailand

  • Unit holders : Stock Exchange of Thailand ,Government Saving Bank and 12 of Commercial Banks

  • Fund capital : 3,000 million Baht

  • Fund Life: 10 years

  • Investmnet Policy :Direct investment in equity or fixed income securities of the companies with emphasis on medium to large businesses

  • Management Fee:None


Company selection process
Company Selection Process Thailand

Candidates Requesting Support

Legal Criteria

Business Criteria

Social Criteria

Selected Candidates


Legal criteria
Legal Criteria Thailand

  • Complies with SEC regulations,the Securities and Exchange Act and Thai Commerce Law

  • Situated in the 6 provinces affected by the Tsunami and engaged in tourism industry

  • The Fund will invest no more than 25% of NAV in any one company


Business criteria
Business Criteria Thailand

Companies will be evaluated in the following categories:

  • Product Characteristics

  • Market Structure

  • Supplier Relationship

  • Shareholders/Management Team and track records

  • Good Governance

  • Financial Strength and Valuation


Social criteria
Social Criteria Thailand

Once candidates have passed the legal and business criteria, they also will be evaluated on the following:

  • Number of employees and wages

  • Environmental preservation such as waste water management, beach preservation


The fund s progress
The Fund’s Progress Thailand

As of May 2006 , we have invested in 20 companies with the majority situated in Khao Lak , Phang-nga and Phuket Provinces

Total investment is 2,700 Million Baht

14 resorts in

Phang-nga Province

4 resorts and 1 cultural

park in Phuket

1 resort in

Krabi Province



Reconstruction progress
Reconstruction Progress Thailand

  • 7 Resorts and 1 Cultural Park have finished construction/renovationand are currently open for business

  • 8 Resorts are expected to be completed and open for businessfor the 2006 high season

  • 4 Resorts are expected to be completed and open for business for the 2007 high season

  • Create long-term employmentsfor more than 3,000 households



Investment policy
Investment Policy Thailand

  • Invest in listed stocks and also non-listed stocks with growth potential which comply with Islamic principles and are in the MFC Islamic Index

  • Religions Advisory Board determines stock selection in compliance with Islamic principles

  • Cash deposit with the Islamic Bank of Thailand


Screening criteria
Screening Criteria Thailand

  • Companies that do not engage in prohibited businesses

  • Companies’ financial ratios

    • The total debt of the investee company is  33%

    • The sum of cash or interest bearing securities of the investee is  33%

    • The accounts receivable is  45 % of the total assets of the company

      3. Use SET Index as the benchmark


Dividend policy
Dividend Policy Thailand

  • Pay dividends at least once a year at a rate of no less than 50% of realized/unrealized profit.

  • The first dividend payment was paid on 25 January 2006 for 0.50 baht per unit or 5%(for the investment period during 21 December 2004 – 30 December 2006)


Religious advisory board shariah committee
Religious Advisory Board (Shariah Committee) Thailand

The Religious Advisory Board (Shariah Committee) is comprised of distinguished members of the Thai Muslim community who are knowledgeable about Islamic law and principles.

The Shariah Committee advises on the criteria in stock selection and on the donations to charity.

1. Mr.Aroon Boonchom 4. Mr.Thongkam Mahamad

2. Dr.Isma-ae Alee 5. Mr.Banchong Binkason

3. Mr.Sorakit Hasan 6. Mr.Noppadol Tehman


Fund Performance Thailand

As at May 26, 2006


Fund performance
Fund Performance Thailand

As at May 26, 2006


Sector allocation

Transportation 3% Thailand

Packaging

3%

Automotive 2%

Electronics 4%

Energy 23%

Petrochemical 9%

Communication 12%

Property Development

16%

Construction Materials 13%

Health Care 15%

Sector Allocation

As at May 26, 2006


Top 10 holding

PTL 3% Thailand

PSL 3%

HANA 5%

PTTEP 25%

DCC 5%

SCCC 8%

PTTCH 8%

AMATA 16%

ADVANC 12%

BH 15%

Top 10 Holding

As at May 26, 2006


Donation of part of management fee to charity sagad
Donation of part of Management Fee to Charity (sagad) Thailand

MFC has a policy to donate part of the management fee equal to 0.25% of net asset value to various charities.

In 2005, MFC donated a total of 85,000 Baht as follows:

1. April : Donated 50,000 Baht to “Charity for Orphans of the Tsunami”

2. July : Donated 35,000 Baht to “Khun Poomi Foundation” to help orphans and schools affected by the natural disaster in the South

In 2006, MFC has plans to donate a total of 620,000 Baht as follows:

1. To donate 570,000 Baht in scholarships to students in the three southern provinces of Yala, Naratiwas and

Pattani.A total of 90scholarships will be awarded.

2. To donate 50,000 Baht to renovate mosques that were damaged by terrorist acts in the South


Fund specifics
Fund Specifics Thailand

  • Size of Fund 343.42 MillionBaht or 10.2025 Baht per unit (as at 16th June 2006)

  • Open for subscription every business day and redemption every Monday

  • The Fund has received support from the following institutions:

    • Islamic Bank of Thailand

    • Government Savings Bank

    • The Stock Exchange of Thailand

    • Social Security Fund



Type of fund
Type of Fund Thailand

  • Open-end Fund : the Unit holders can invest once a month

  • Investment Policy : Flexible Fund can invest in equity, fixed-income and other instruments

  • Invest in the securities that are considered as “Socially Responsible”

  • Benchmark: SET 50


Screening policy
Screening Policy Thailand

TopicInvestment Policy

Alcohol :No Investment

Tobacco :No Investment

Gambling :No Investment

Defense/Weapon :No Investment

Animal Testing :No Investment

Pornographic Related :No Investment

TopicInvestment Policy

Environment :Invest Positively

Beneficial products and services :Invest Positively

Labor Relations :Invest Positively

Human Rights :Invest Positively

Employment/Equality :Invest Positively

Community Investment :Invest Positively


Fund management methodology
Fund Management Methodology Thailand

  • “Applies financial criteria then conducts social screening”

  • Social Screening Method would be

    • Using 3rd party standard:

      • ISO 14000

      • Corporate Governance Standard according to SET

    • If no 3rd party standard, we use:

      • Internal Screening Committee


Why iso 14000
Why ISO 14000 Thailand

  • ISO 14000 is a series of environmental management standards

  • The ISO 14000 standards provide a guideline or framework for organizations that need to systematize and improve their environmental management efforts.


Study in thailand
Study in Thailand Thailand

  • Preliminary study on ISO 14000 companies listed in SET


Study in thailand1
Study in Thailand Thailand

Set Index

ISO14000

Companies return


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