• Thai SEC opened consultation on draft improvements to property funds disclosures.
• Including infrastructure funds and REITs or mutual funds/trusts that invest in leasehold or leasehold income so that investors have the information necessary for decisions.
• While also updating the disclosure form for fund and trust summaries to be short and concise for ease of understanding, and comparability between sectors.

Background

• In October 2018, SEC consulted on proposed fund disclosure for leaseholds.
• During the consultation most responses agreed with the principles proposed.
• Thai SEC has improved criteria according to recommendations to be more appropriate.

Summary

• Asset management companies and trust managers must disclose the internal rate of return (IRR) so investors can be informed about both expected and long term returns.
• For property funds (division 1), asset management will disclose IRR estimates that unit holders will receive in the annual registration statement and annual fund report.
• In addition, the asset management company or the REIT manager shall disclose the asset valuation report and review report so investors and analysts have information.
• The latest appraisal of property values will be disclosed through appropriate channels, such as website announcements, 30 days from the completed date of assessment.
• Annual registration statement and annual fund report will be concise, easy to understand and in a form where investors can consider the risk, use for comparison.

Effectiveness

• Comment period ends 22 February 2020.