mfc asset management plc (ppt 664kb)

Corporate Environment and Social Corporate Environment and Social Responsibility (CESR) in ThailandResponsibility (CESR) in Thailand

MFC Asset Management plc.MFC Asset Management plc.20 June 200620 June 2006

Tsunami Recovery Fund

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The Effects of the TsunamiThe Effects of the Tsunami

Ranong Phang-nga Phuket Krabi Trang SatunTotal of 53,203

peopleor 12,293 households

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The Effects of the TsunamiThe Effects of the Tsunami

Economic Environmental

Social

Fishing

Tourism/Hospitality

Affected 2,293 Household

Lost home

Lost job

Beaches

Coral reef

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Tsunami Recovery Fund Tsunami Recovery Fund SpecificsSpecifics

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

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Company Selection Process

Candidates Requesting

SupportLegal Criteria

Business CriteriaSocial

CriteriaSelected

Candidates

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Legal CriteriaLegal Criteria

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

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Business CriteriaBusiness Criteria

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

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Social CriteriaSocial Criteria

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

Number of employees and wages

Environmental preservation such as waste water management, beach preservation

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The Fund’s Progress

Total investment is 2,700 Million BahtTotal investment is 2,700 Million Baht

14 resorts in Phang-nga Province 14 resorts in Phang-nga Province

4 resorts and 1 cultural park in Phuket

4 resorts and 1 cultural park in Phuket

1 resort inKrabi Province

1 resort inKrabi Province

As of May 2006 , we have invested in 20 companies with the majority situated in

Khao Lak , Phang-nga and Phuket Provinces

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Lists of companies in which the fund has invested

11 Palm Andaman Resort

12 Bundrika Resort

13 Khao Lak Bayfront Resort

14 Khao Lak Laguna Resort

15 Khao Lak Bundari Resort

16 Taranta Resort

17 Khao Lak Wanaburi Resort

18 Treesala Resort

19 Pavillion Resort

20 Phuket Fantasea

1 Rayawadee Resort

2 Mookdara Beach Resort

3 Sudalha Raman Resort

4 Khao Lak Palm Beach Resort

5 Baan Khao Lak Resort

6 Haad Son Resort

7 Pakarang Resort

8 Takolaburi Resort

9 Best Western Palm Galleria Resort

10 Southsea Pakarang Resort

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Reconstruction Progress

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

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

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

Create long-term employments for more than 3,000 households

MFC Islamic Fund

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Investment Policy

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

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Screening Criteria

1.Companies that do not engage in prohibited businesses

2.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

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Dividend Policy

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)

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Religious Advisory Board (Shariah Committee)

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

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Fund Performance

(After adjusting for dividends)

3 Months 6 Months 1 YearSince

Inception

MIF 0.70% 7.11% 17.66% 11.93%

SET Index -3.28% 7.11% 8.14% 6.85%

MFC Islamic Index -1.18% 8.09% 20.61% 16.28%

Fund Performance

As at May 26, 2006

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Fund Performance

As at May 26, 2006

90

95

100

105

110

115

120

125

130

21/12/47 21/02/48 21/04/48 21/06/48 21/08/48 21/10/48 21/12/48 21/02/49 21/04/49

MIF

SET INDEX

MFC Islamic Index

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Sector AllocationSector Allocation

As at May 26, 2006

Energy 23%Electronics 4%

Communication 12%

Property Development 16%

Petrochemical 9%

Construction Materials 13%Health Care 15%

Packaging 3%

Transportation 3%Automotive

2%

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Top 10 Holding

As at May 26, 2006

PSL 3%PTL 3%HANA 5%

DCC 5%

SCCC 8%

PTTCH 8%

ADVANC 12%BH 15%

PTTEP 25%

AMATA 16%

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Donation of part of Management Fee to Charity

(sagad) 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 90 scholarships will be awarded.2. To donate 50,000 Baht to renovate mosques that were damaged by terrorist acts in the South

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Fund Specifics

Size of Fund 34342. Million Baht 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

MFC Environmental and Socially Responsible

Investment Fund

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Type of Fund

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

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Screening Policy

Topic Investment Policy

Alcohol :No Investment

Tobacco :No Investment

Gambling :No Investment

Defense/Weapon :No Investment

Animal Testing :No Investment

Pornographic Related :No Investment

Topic Investment 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

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Fund Management Methodology

“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

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Why ISO 14000

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.

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Study in Thailand Preliminary study on ISO 14000 companies

listed in SET

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Study in Thailand

0

80

160

240

320

400

Jan-03 May-03 Sep-03 Feb-04 Jun-04 Nov-04 Mar-05 Aug-05 Dec-05 Apr-06

ISO14000Compani

es return

Set Index