More than 50 Thai ESG X funds planned for May unveiling
The Association of Investment Management Companies (AIMC) announced the establishment of more than 50 Thai ESG Extra (ESG X) funds from over 20 member companies on May 2, with expectations for new liquidity of more than 20 billion baht flowing to the Thai stock market.
The association anticipates roughly half of the maturing long-term equity funds (LTFs) or 85 billion baht will be transferred to Thai ESG X funds, bringing the total to more than 100 billion baht for the new fund category by the end of June.
AIMC chairwoman Chavinda Hanratanakool said there is roughly 170 billion baht remaining in LTFs awaiting redemption, of which half is expected to be transferred to Thai ESG X funds.
Sales of Thai ESG X funds are slated to be available during May and June. More investment money is expected than for the first offering of the Thai ESG Fund, which had only a two-week sales period drawing total investment of 6 billion baht.
In the short term, the Thai stock market has plunged in trading liquidity, especially from March 24-28, when trading value dropped to roughly 20 billion baht per day from 30-40 billion a week earlier due to investor concerns over the tariff policy of US President Donald Trump, with more details expected on April 2.
If Thailand is affected by Trump’s tariffs, investment sentiment would be hit hard, noted the AIMC. The association projects the Stock Exchange of Thailand to have a support level of 1,100 points and resistance at 1,450 points.
Investment should improve in the second half of the year, with the Bank of Thailand expected to cut interest rates by another 25 basis points to 1.75%, according to the AIMC.
As a consequence, investment in both short and long-term debt instruments should increase to mitigate the volatility, noted the association.
The AIMC is scheduled to meet with the Securities and Exchange Commission (SEC) this week to discuss additional law enforcement measures after the government resolved to increase the SEC’s authority to conduct investigations related to stocks and investment.
The association will propose the SEC hold discussions with relevant agencies involved in investment such as credit rating agencies and financial advisors, said Mrs Chavinda. If fraudsters are proven to have deceived people, they will be punished with stronger penalties, she said.
Fraud involving companies with a large market capitalisation must be tackled quickly to prevent the transfer of assets, noted the AIMC.
Greater SEC powers could also shorten the trial process, helping to reduce the damage from illegal activities, said Mrs Chavinda.
Blacklisted executives and directors involved in fraud should be subject to greater penalties, including a jail term, she said.
Blacklisted executives and directors involved in fraud should be subject to greater penalties, including a jail term, she said.
Credit : https://www.bangkokpost.com/business/investment/2991494/more-than-50-thai-esg-x-funds-planned-for-may-unveiling.