Background

MFC Asset Management Public Company Limited

MFC is Thailand's first mutual fund management company. It was founded by the Thai Government and the International Finance Corporation (IFC) on 14 March 1975 under the name of The Mutual Fund Co., Ltd. with an objective of mobilizing savings from the public for development of the Thai capital market. A securities license to manage investment funds was granted by the Ministry of Finance on 29 December 1975. Current major shareholders of the Company are the Ministry of Finance, Government Savings Bank, and Thai Military Bank.

MFC is licensed to manage 3 types of funds:

1.	Mutual Funds : MFC received a fund management license from the Ministry of Finance on 29 December 1975 (License No. 103/2518). The first domestic fund named 'Sinpinyo Fund' was launched in 1977 with an initial size of Baht 100 million. As for country funds, The Thailand Fund was the first open-end fund set up in 1986 with an initial size of USD 30 million.
2.	Provident Funds : MFC was authorized by the Ministry of Finance to manage provident funds under the Ministry of Finance Regulation No. 162 (B.E. 2526) since 1984.
3.	Private Funds : MFC received a private fund management license from the Ministry of Finance in 1997.

Besides fund management, MFC was authorized to undertake securities registration business by the
Ministry of Finance since 1982 and the SEC since 1993.

Significant Changes:

In 2001, the Company's name was changed from The Mutual Fund Public Company Limited to MFC Asset Management Public Company Limited on 9 March 2001. The new name clearly reflects the Company's investment management business, is unique and easy to remember. The Company also changed its logo at the same time. In the area of fund management, the Company established Thailand Equity Fund in accordance with the Government policy. Unitholders of the fund are institutional investors namely CalPERS, Lombard Inc., Asian Development Bank, International Finance Corporation and other 13 Thai financial institutions.

In 2002, the Company was one of the 5 management companies granted permission by the SEC to establish a foreign investment fund, named “MFC Global Equity Fund “ (MGE) in association with Wellington Management Inc. as co-managers. MGE was offered to Thai investors and obtained favourable responses from investors.

In 2003, the Company was restructured into 4 divisions: Marketing, Fund Management, Operation, and Financial Administration and Profit Center. Previously there were three divisions : Business Development, Fund Management, and Administration. In the area of fund management, the Company was entrusted by the Vayupak Fund Committee to co-manage the fund with Krung Thai Asset Management Public Company Limited. Vayupak Fund 1 has an initial size of Baht 100,000 million, making it the biggest mutual fund in Thailand. The Company has Vayupak Fund 1 under management with the value of Baht 50,000 million.

In 2004, MFC set up MFC Global Opportunity Bond Fund with Nikko Global Asset Management ( Singapore) Ltd. as the investment advisor. The Fund invests in foreign bonds and debt instruments. MFC also set up MFC Islamic Fund, the first mutual fund in Thailand which invests according to Islamic principles. Investors in the Fund are Government Savings Bank, Social Security Fund, the Securities Exchange of Thailand, Islamic Bank of Thailand and Thai Military Bank Public Company Limited.