Policy on Investments in Listed Shares
Ref: COR:MS/EL05011e/st
13 May 2005
Subject: Policy on Investments in Listed Shares
To: The President of the Stock Exchange of Thailand
Thoresen Thai Agencies Plc. ("TTA") invests its cash balances in a variety of financial products including
bank deposits, government bonds, and listed shares on the Stock Exchange of Thailand ("SET").
Since the SET has requested TTA to advise its investment policy on listed shares, TTA would like to make
the following statement.
The Board of Directors has approved a total investment limit of Baht 800 million and appointed an
Investment Committee comprising of three directors to be responsible for such investments. The managing
director is responsible for daily monitoring and trading activities.
The Investment Committee has set guidelines to manage the share portfolio. Shares in the portfolio must
have large market capitalisation and good market liquidity. The share investment focus will be on companies
with a good financial track record and regular dividend payments to shareholders. The portfolio will take a
diversified investment approach, and the investment in a single company will not exceed 10% of the
portfolio, which shall contain no more than the shares of 12 companies. Stop loss limits will be applied on all
shares that lose more than 10% of their value.
The investment in listed shares is a method of cash management which aims to generate a higher yield than
normal bank deposits. The Investment Committee will analyse and monitor the portfolio regularly and will
report its performance to the Board of Directors every quarter.
Yours faithfully,
(M.R. Chandram S. Chandratat) (M.L.Chandchutha Chandratat)
Chairman Managing Director