Derrick:
There may be more factors at work here than ease of investment. Explain these anomolies, for example.
Thai Fund sells now at approximately a 150% premium while Thai Capital is at about 80%. Over the past 18 months, Thai Capital has out-performed Thai Fund!
Meanwhile, Thai Euro Fund and others on the London stock exchange are at small discounts! Tax considerations and liquidity may explain some difference, but not 80% to 150%.
Less than a year ago, Thai Fund, Thai Capital, Indonesia Fund and others sold at discounts.
My tentatively held belief is that we are looking for rational explanantions where none exist. I've been looking for some time. We seem to be dealing with inefficient markets, uninformed participants, and Martians at work!
I eagerly await a better explanation and refer readers to www.icefi.com for more discussion.
peter
P.S. I have searched and searched for efficient ways to go long Thailand, and so far the best I've found is London. The Thai ADR's have huge spreads and do not form a good proxy for the market overall. I've found no US based open end fund. |
