Managing Director of Krungsri Asset Management Ms. Supaporn Leenabanjong said Krungsri Asset Management is offering a new tax-exempt fund for sustainability called the “Thai ESG Fund” or Thai Mutual Fund. Under the name Krungsri Enhanced Thai SET for Sustainability (KFTHAIESG), the policy is to focus on investing in shares in the SETESG index of the Stock Exchange of Thailand. Use an investment strategy that combines passive investing and active management. Approximately 90% of the total portfolio portfolio will be invested to earn as much SET ESG index return as possible. EXTRA INCOME There are 2 types of investments to choose from: KFTHAIESGA Fund has no dividend payment policy and KFTHAIESGD has a dividend payment policy. First offer 8-18 December 2023, minimum investment 500 baht.
However, KFTHAIESG fund will have separate exemption limit. Not linked to investments in SSF / RMF and other pension investments. Investors who have invested their entire rights in SSF / RMF Fund can additionally invest in KFTHAIESG Fund.
“Krungsri Asset Management believes that today is a good time to gradually accumulate Thai shares. Because the Thai stock market will improve. from the government’s economic stimulus measures and the economic recovery of Thailand’s important trading partners. Interest rates are gradually being cut by major central banks around the world. And performance of listed companies will improve. Investing in ESG stocks in particular is becoming more and more popular.”
In Thailand, ESG is given a lot of importance, a trend that continues to grow as most institutional investors shift from allocating investment funds to companies that place emphasis on ESG. Government and business sectors are also paying more attention to investing according to the ESG framework. They also provide ESG ratings for various funds, including world-class rating agencies such as Morningstar Sustainability Rating and MSCI ESG Fund.
Considering the information available from the stock exchange at the end of October 2023, 115 companies listed in the SETTHSI index (renamed SETESG index on 6 November 2023) and found to have a market cap. They are approximately 12.38 trillion baht, compared to the SET index’s total market capitalization of 19.21 trillion baht, with large Thai companies emphasizing ESG and having very high investment liquidity.
From the point of view of returns SETESG Total Return Index (SETESG TRI) is giving better return than Thailand Total Return Index (SET TRI) Stock Market. If you take a look at the 3 year long term returns, you will see that SETESG TRI has an Earnings of 10.87. %. For the year, the SET TRI index stands at 7.99%. Looking back over the past 5 years, SETESG TRI has returned -0.32% per year. SET TRI INDEX -0.78%” (Source: Stock Market Thailand as of end October 2023 / Past performance results are not a guarantee of future performance)
Incorporating ESG factors into investment decisions helps generate good returns. and lowers investment risk as companies that emit less pollution are less likely to have regulatory problems. And the risk of public opposition is low, so stock price fluctuations are less than those of high-polluting companies. Because authorities can control using different rules. It may be necessary to invest more money in reducing emissions to meet business-as-usual criteria. A clear example of what is happening overseas is the Chinese government’s aim to reduce carbon emissions. Meanwhile, many Chinese power companies still produce electricity from fossil fuels. As a result, power plants must periodically shut down production to reduce carbon emissions. As a result, China’s manufacturing sector has been disrupted, for example.