MAN TIPPED AS NEW GPF CHIEF STANDS BY CONSERVATISM AND FLEXIBILITY

       Conservatism, flexibility and an interest in new financial instruments are the key investment strategies of Tachaphol Kanjanakul, 48, a senior executive vice president for financial mangement at the Government Savings Banks, who has been tipped as the new secretary-general of the Government Pension Fund (GPF).
       His name has emerged as one of the candidates for the GPF's top job, to replace Visit Tantisunthorn, who was fired in June amid allegations of management irregularities.
       The GPF board is expected to chosse a new chief for the fund at its meeting this month.
       Tachaphol said he had three key strategies in managing his own portfolio or personal savings.
       First, he must be concervative. However, that does not mean he will be too conservative to dare invest in new things. Rather, he will be very prudent and careful, he said.
       Second, investment must be flexible and adjustable, in line with changing situations, so as to proteet his portfolio from the impacts of market volatility.
       Finally, he said he was ready to study new financial investments and new forms of investment, in order to create good returns for his personal portfolio. However, there had to be good reasons for such investments.
       Tachaphol's duties at GSB will include managing the state bank's portfolio and setting long-term investment strategy. He has also set up a virtual protfolio that he uses as a model for both GSB's asset management and managing his own porfolio.
       Tachaphol said his personal investments were mostly in mutual funds, both equity and fixed income, which were managed by other fund managers. He also invests in long-term equity funds and retirement mutual funds, because of tax incentives.
       "I invested in the funds of several asset-management firms, in order to diversify risk. I also allocate assets in a variety of investment channels, to diversify risk. Aside from mutual funds and stocks, I also invest in property, particularly condominium units for resale or rent. The return is quite good, if you choose a good location," he said.
       Tachaphol said that in selecting asset-management companies, he looked at their track record and, most importantly, the expertise of their fund managers. He studies the performance of each company before making an investment. However, he believes past performance does not guarantee continuing outstanding performance, because the investment enviroment is changing all the time.
       He said investors shoudl study each mutual fund in detail, particularly equity funds.
       Personally, Tachaphol said he liked equity funds that invested long term in good fundamental stocks. He does not like funds that invest in smaller stocks, because prices are quite volatile and risky.
       When it comes to condominiums, Tachaphol said he had invested in some projects for both resale and rent, particularly projects close to Skytrain stations. Importantly, the projects must be managed by the top four developers.
       "If we get a [commdominium in a] good location with good quality, foreign tenants won't ask for bargain prices. So I believe investing in condminiums is worth it," he said.
       Tachaphol is now planning new investments in property funds. He prefers to invest in freehold property funds, where investors own the assets, rather than leasehold property funds. Ultimately, freehold funds have the opportunity for returns from the sale of assets at the end of a project, he said.