Thailand's Social Security Fund Aims for Higher Returns with Global Investments
Thailand's seventy-seven billion dollar Social Security Fund plans to invest eleven point six billion dollars in global private assets to improve returns. The fund has underperformed, averaging under three percent returns over the past decade. The new board aims to diversify the portfolio to address the growing demands from the country's ageing population.
Thailand's $77-billion Social Security Fund (SSF) plans to invest $11.6 billion in global private assets to improve its returns.
Over the past decade, the SSF has averaged returns of under 3%, significantly below its potential.
This strategic overhaul is driven by rising demands from an ageing population.
Under the new board, 15% of the fund will be dedicated to global private assets by mid-2027, with an overall investment restructuring planned.
The move aims to diversify the fund’s historically domestic-focused and low-risk portfolio, which is seen as unsustainable.
The SSF supports 25 million workers with healthcare, unemployment benefits, and pensions, but it risks going bankrupt by 2051 if changes are not made.
The initiative reflects broader efforts to address Thailand's growing elderly population, which has doubled since 2004 to 13 million by December 2023.
Experts highlight the critical need for higher returns and better governance to ensure the fund's long-term viability.
Over the past decade, the SSF has averaged returns of under 3%, significantly below its potential.
This strategic overhaul is driven by rising demands from an ageing population.
Under the new board, 15% of the fund will be dedicated to global private assets by mid-2027, with an overall investment restructuring planned.
The move aims to diversify the fund’s historically domestic-focused and low-risk portfolio, which is seen as unsustainable.
The SSF supports 25 million workers with healthcare, unemployment benefits, and pensions, but it risks going bankrupt by 2051 if changes are not made.
The initiative reflects broader efforts to address Thailand's growing elderly population, which has doubled since 2004 to 13 million by December 2023.
Experts highlight the critical need for higher returns and better governance to ensure the fund's long-term viability.
