Chavinda Hanratanakool, Managing Director of Krungthai Asset Management (KTAM) and President of the Association of Investment Management Companies (AIMC), revealed that the government’s recent announcement of the establishment of the Thai ESG X Fund on March 11, 2025, has significantly curbed the selling pressure on Long Term Equity Funds (LTFs). Currently, the remaining LTFs now hover around THB 170 billion.
Chavinda expressed confidence that the official offering of the Thai ESG X Fund, scheduled from May 2 to June 30, 2025, will attract a substantial 50% of LTF capital, equivalent to approximately THB 80 billion, with new investments into the fund projected at about 30%, or around THB 20 billion. This is anticipated to result in a total inflow of up to THB 100 billion into the Thai ESG X.
Simultaneously, the Securities and Exchange Commission (SEC) has allowed asset management companies to express their interest in establishing Thai ESG X Funds starting this April. It is expected that up to 50 Thai ESG X Funds will be introduced by various asset management companies across the industry.
The investment strategy of the Thai ESG X Fund emphasizes a significant allocation of 80% in high-sustainability equities, with 65% in Thai stocks and 15% in Thai bonds. The remaining 20% will be diversified across international equity and bond markets to ensure growth aligned with targeted returns.
The AIMC President is highly confident that the Thai stock index will reach 1,450 points this year, driven by multiple factors including debt restructuring, LTV easing, market measures, and increased authority for the SEC. These factors are expected to restore market confidence.
Additionally, a further interest rate cut by the Monetary Policy Committee would stimulate the market, potentially driving the index to the 1,450-point mark. The Cabinet’s approval to expedite the SEC’s power under a Royal Decree, rather than a legislative act, will further reinforce timely enforcement.
Chavinda further stated that the company aims for its total assets under management (AUM) to reach THB 1 trillion by the end of 2025, an increase of approximately THB 50 billion from the end of 2024, when AUM stood at THB 951 billion. This growth is attributed to the expansion of bond funds amid downward interest rate trends, diversification asset growth, and increased provident fund assets.
