NEW YORK -- (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
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.
The Thai Fund, Inc.
Source: The Thai Fund, Inc.