Mrs. Chavinda Hanratanakool, Chief Executive Officer of Krungthai Asset Management (KTAM) and President of the Association of Investment Management Companies (AIMC), revealed that the Thai ESG Fund (Environmental, Social, and Governance) concluded 2024 by attracting new investments amounting to 23 billion baht. This exceeds the initial targets and boosts the Assets Under Management (AUM) to 30 billion baht at the end of 2024, marking a remarkable increase of 400% compared to 2023, when the AUM was at 6 billion baht.
The significant growth of the Thai ESG Fund is attributed to continuous investor education through all communication channels and capital inflow into fixed-income securities, aligning with the decreasing interest rate trend. Currently, the Thai ESG funds offer three types of investment: Thai equity funds, fixed-income funds, and mixed funds.
Regarding new investment criteria for the Thai ESG, Chavinda mentioned that by reducing the calendar year holding period to five years, the Thai ESG fund will continue to receive positive feedback by 2025.
Additionally, she expressed confidence in the recovery of the Thai stock market within the next five years due to various supporting factors, such as government economic stimulus policies and rigorous good governance practices. These measures are expected to prevent issues similar to those in the past two years, restoring confidence in the Thai stock market and benefiting both the market and investors. Moreover, current Thai stock prices are not expensive and present viable investment opportunities.
Chavinda further commented on the overall Thai economic situation, which remains volatile this year due to negative factors like Trump’s policies. Investors worldwide are awaiting clarity on these policies after “Donald Trump” assumed the presidency as the latest U.S. President, leading to continued volatility in global stock markets, including Thailand. However, clarity on Trump’s policies is expected by January 2568.
As for promising sectors, tourism and services are performing well due to the continuously bright outlook of the tourism industry. The banking sector also holds potential as it stands to benefit from government measures aimed at stimulating the economy. Successful economic stimulation will encourage domestic spending, positively affecting the banking sector. For the Thai stock market, this year’s investment remains predominantly domestic-focused.
