Thailand's ESG Funds Projected to Surpass 100 Billion Baht in H2 2025
The growth of Environmental, Social, and Governance funds is set to accelerate with new investment schemes and transfers from long-term equity funds.
In the second half of 2025, total investments in environmental, social, and governance (ESG) funds in Thailand are anticipated to exceed 100 billion baht, according to the Association of Investment Management Companies (AIMC).
This estimate includes transfers from maturing long-term equity funds (LTFs) along with new investments directed towards ESG fund categories.
Chavinda Hanratanakool, chairwoman of AIMC, noted that the recently introduced Thai ESG Extra (ESGX) fund could generate approximately 30 billion baht in new investments, alongside the current total outstanding value of existing Thai ESG funds, which stands around 30 billion baht.
When factoring in the anticipated LTF transfers, the cumulative value of all Thai ESG funds is expected to surpass the 100 billion baht threshold.
All investment management companies are projected to unveil their Thai ESGX funds by April or May 2025. Chavinda emphasized institutional investors’ readiness to engage in Thai stock markets in light of the expected growth in the earnings of listed Thai companies.
While there are concerns among some investors, Chavinda expressed optimism about the resilience of the Thai stock market and the broader economic recovery.
“The Stock Exchange of Thailand (SET) presents a low-risk profile with potential upside opportunities,” she stated, urging investors not to postpone their purchases of Thai stocks, cautioning them against missing out on forthcoming market opportunities.
In a continued effort to engage with the market, Krungthai Asset Management (KTAM), the managing entity of the state-controlled Vayupak Fund 1, has been strategically increasing its investments, albeit gradually, due to the fund’s commitment to a guaranteed 3% return for the initial three years.
Chavinda, also the CEO of KTAM, asserted, “The fund invests in stocks demonstrating strong fundamentals and substantial dividend yields.
Investors should maintain confidence.”
The SET is currently facing pressures from global economic conditions, with expectations that market downturns are often followed by subsequent recoveries.
According to Maybank Securities, equities likely to benefit from the inflow of Thai ESGX funds include companies recognized for their alignment with ESG principles and robust earnings growth prospects, such as Bangkok Dusit Medical Services (BDMS), Advanced Info Service (ADVANC), and Central Pattana (CPN), among others.
Asia Plus Securities identified additional stocks poised to gain from LTF transfers to ESGX funds, including PTT Exploration and Production (PTTEP), CP All (CPALL), and several major banking institutions.
The brokerage further noted that restructuring of portfolios towards ESG-rated stocks could advantage firms such as KCE Electronics (KCE) and Central Plaza Hotel (CENTEL).
This estimate includes transfers from maturing long-term equity funds (LTFs) along with new investments directed towards ESG fund categories.
Chavinda Hanratanakool, chairwoman of AIMC, noted that the recently introduced Thai ESG Extra (ESGX) fund could generate approximately 30 billion baht in new investments, alongside the current total outstanding value of existing Thai ESG funds, which stands around 30 billion baht.
When factoring in the anticipated LTF transfers, the cumulative value of all Thai ESG funds is expected to surpass the 100 billion baht threshold.
All investment management companies are projected to unveil their Thai ESGX funds by April or May 2025. Chavinda emphasized institutional investors’ readiness to engage in Thai stock markets in light of the expected growth in the earnings of listed Thai companies.
While there are concerns among some investors, Chavinda expressed optimism about the resilience of the Thai stock market and the broader economic recovery.
“The Stock Exchange of Thailand (SET) presents a low-risk profile with potential upside opportunities,” she stated, urging investors not to postpone their purchases of Thai stocks, cautioning them against missing out on forthcoming market opportunities.
In a continued effort to engage with the market, Krungthai Asset Management (KTAM), the managing entity of the state-controlled Vayupak Fund 1, has been strategically increasing its investments, albeit gradually, due to the fund’s commitment to a guaranteed 3% return for the initial three years.
Chavinda, also the CEO of KTAM, asserted, “The fund invests in stocks demonstrating strong fundamentals and substantial dividend yields.
Investors should maintain confidence.”
The SET is currently facing pressures from global economic conditions, with expectations that market downturns are often followed by subsequent recoveries.
According to Maybank Securities, equities likely to benefit from the inflow of Thai ESGX funds include companies recognized for their alignment with ESG principles and robust earnings growth prospects, such as Bangkok Dusit Medical Services (BDMS), Advanced Info Service (ADVANC), and Central Pattana (CPN), among others.
Asia Plus Securities identified additional stocks poised to gain from LTF transfers to ESGX funds, including PTT Exploration and Production (PTTEP), CP All (CPALL), and several major banking institutions.
The brokerage further noted that restructuring of portfolios towards ESG-rated stocks could advantage firms such as KCE Electronics (KCE) and Central Plaza Hotel (CENTEL).
