TESG Mutual Funds is one of the hopes of the Thai capital market at the end of this year. Let’s take a look at the guidelines for “ESG funds” investing in Thailand that came to support the market somewhat. In the past, it was found that contrary to the negative trend of the investment market this year the 3-year returns are still positive, led by the TISESGD fund with a 3-year return of 9.70% per annum.
TESG Mutual Funds is one of the hopes of the Thai capital market at the end of this year. Let’s take a look at the guidelines for “ESG funds” investing in Thailand that came to support the market somewhat. In the past, it was found that contrary to the negative trend of the investment market this year the 3-year returns are still positive, led by the TISESGD fund with a 3-year return of 9.70% per annum.
This is good news for investors. The government department has an idea to establish a Thai mutual fund for sustainability (Thailand ESG Fund) or TESG mutual funds to help support the market. Including being able to use it for tax deduction. It is similar to a long-term equity mutual fund (LTF), but focuses on investing in securities that emphasize ESG issues.
At the office of the Securities and Exchange Commission (SEC) on December 8, Association of Investment Management Companies (AIMC) and related agencies are gearing up to launch the first sale of TESG mutual funds, from 16 mutual funds to a total of 22 funds.
There is an expectation that money will come in to investTESG Mutual FundTax cuts for 2023 are set at a target of 10,000 million baht, which should help improve conditions for the Thai stock market somewhat. This is an auspicious time to provide such funds. Because the volume of the Thai stock market index has fallen significantly.
The Thai stock market has been in the midst of volatility throughout the year. But at least investing in sustainability (ESGSustainable funds (ESG funds) in Thailand can still provide positive long-term returns of at least 3 years.
Let’s take a look at “ESG Funds” that offer the best returns. What funds are available? To act as a guide for selecting investment strategies in TESG Mutual Funds.
Recently, Morningstar Research (Thailand) announced the following “Top 5 ESG Funds with Best 3-Year Returns Investing in Thailand”:
1. TISCO ESG Open Fund for Society (TISESGD) has returned (YTD) -14.46%, with a 3-year return of 9.70% per annum.
2. KKP SET50 ESG Open Fund, Special Savings Category (KKP SET50 ESG SSFX) Return (YTD) -11.62%, 8.30% per annum 3 year return.
3. TISCO THAI SHARES WELFARE OPEN FUND (TISCOWB-A) has -17.21% return (YTD), 3-year return is 7.22% per annum.
4. KIND THAI MUTUAL FUND (BKIND) Return (YTD) -11.97 %, 6.75% per annum 3 year return.
5.K Open Fund Thai Management Shares For Life (K Thai Equity CGRMF) Return (YTD) -14.60 %, 3 year return 6.00% p.a.
It currently has a net asset value of 45 billion baht, divided into 22 funds with a net asset value of 2.5 billion baht in Thai stocks and 91 funds investing overseas with a net asset value of 43 billion baht.
It is said that 94% of ESG funds sold in Thailand are mostly invested abroad. Net outflows have now totaled 1.8 billion baht since the start of the year.
Currently, there are only 6 mutual funds that have issued ESG funds that invest in Thai stocks. After this, we can see every mutual fund company offering more ESG funds.
For investors interested in investingFixed Funds Or ESG funds have a tool with the index “Earth” called the Morningstar Globe Rating that assesses sustainability risks. This may also cause the fund to receive a lower Globe rating if the fund invests in stocks with higher ESG risks compared to peers in the same group.
The Globe Rating is on a scale of 1-5 (5 Globe being the lowest ESG risk) and uses ESG risk score data for each listed company worldwide as assessed by the company. Sustainalytics is used. Currently, it is estimated that there are more than 170 companies listed in Thailand covering a wide range of industries.
Sustainable investment around the world
Fixed investment inflows around the world continue to decline. This is due to many factors both inflation and high interest rates. including concerns about a potential economic slowdown. This has caused a lot of concern for investors. Net inflows totaled $13.7 billion for the quarter.
And the net asset value of global sustainability funds fell 4.2% to $2.7 trillion at the end of September amid volatility in global markets. There is still $15 billion in net inflows from the European Stability Fund.
In addition, there is still a persistent slowdown in the development of new products, including greenwashing and strict regulations. As a result, there are fewer funds that include the word ESG in the fund name. Meanwhile, on the contrary, there are more funds. Removing ESG-related words from fund names, particularly in the US
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