The Thai Fund, Inc. Announces Change in Benchmark, Suspension of Discount Management Policy, Information Regarding Share Repu...
May 16 2012 - 8:30AM
Business Wire
The Thai Fund, Inc. (NYSE: TTF) (the “Fund”) announced today
that its Board of Directors has approved a change in the Fund’s
benchmark to the Stock Exchange of Thailand (SET) Total Return
Index. The Securities Exchange of Thailand (SET) Index, which had
historically been used by the Fund as its benchmark, is a price
only index, which does not include the reinvestment of dividends in
its calculation of index performance.
The Stock Exchange of Thailand (SET) Total Return Index is a
composite index which represents the aggregate price movement for
all common stocks traded on the SET. The Total Return Index
measures market performance, including price movements (capital
gain/loss), rights offered to current shareholders allowing them to
purchase additional shares, usually at a discount to market price
(rights offering), and income from gross dividend payments
(dividends) assuming they are reinvested in securities. The index
is calculated in USD.
On March 23, 2012, the Fund announced that the Board approved a
policy designed to attempt to narrow the trading discount for the
Fund (the “Policy”). Upon further consideration, given the Fund’s
structure and related regulatory and tax considerations, the Board
has determined to suspend the Policy pending further analysis by
and discussion with Morgan Stanley Investment Management Inc.
(“MSIM”), the investment adviser to the Fund, of potential
alternatives to attempt to address the discount at which the Fund’s
shares trade, which may include, among other things, tender offers,
mergers, and open-ending. The Fund is structured whereby the Fund
makes its investment in Thailand through a Thai Investment Plan
(the “Plan”) that was established in conformity with Thai law and
the Fund is the sole unit holder of the Plan.
The Fund continues to maintain a share repurchase program (the
“Program”) for purposes of enhancing stockholder value and reducing
the discount at which the Fund’s shares trade from their net asset
value. Since the inception of the Program on February 7, 2011, the
Fund has repurchased 5.0 percent of its shares. The Fund expects to
continue to repurchase its outstanding shares at such time and in
such amounts as it believes will further the accomplishment of the
foregoing objectives of the Program, subject to review by the Board
of Directors. On a monthly basis, the Fund intends to make
available on its public website information regarding the Fund’s
repurchase activity.
In addition, MSIM announced that James Cheng, a portfolio
manager of the Fund, will retire effective December 31, 2012. Munib
Madni, a Managing Director of Morgan Stanley Investment Management
Company, the sub-adviser to the Fund, and Ruchir Sharma, a Managing
Director of MSIM, will continue to be jointly and primarily
responsible for the day-to-day management of the Fund’s portfolio
upon Mr. Cheng’s retirement.
The change in benchmark as well as the change in portfolio
management team does not affect the investment objective of the
Fund, nor the way in which the Fund’s portfolio is managed.
The Board of Directors has also approved the creation of a
committee of independent Directors to consider a range of issues
unique to closed-end funds.
The Fund is a non-diversified, closed-end management investment
company that seeks long-term capital appreciation through
investment primarily in equity securities of companies organized
under the laws of the Kingdom of Thailand. The Fund’s shares are
listed on the New York Stock Exchange under the symbol “TTF.”
Morgan Stanley Investment Management, together with its
investment advisory affiliates, has approximately 620 investment
professionals around the world and $304 billion in assets under
management or supervision as of March 31, 2012. MSIM strives to
provide outstanding long-term investment performance, service and a
comprehensive suite of investment management solutions to a diverse
client base, which includes governments, institutions, corporations
and individuals worldwide.
Morgan Stanley is a leading global financial services firm
providing a wide range of investment banking, securities,
investment management and wealth management services. The Firm’s
employees serve clients worldwide including corporations,
governments, institutions and individuals from more than 1,300
offices in 43 countries. For further information about Morgan
Stanley, please visit www.morganstanley.com.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
the securities in any state in which such offer, solicitation or
sale would be unlawful under the securities laws of any such
state.
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