TESG mutual funds are one of the hopes of the Thai capital market at the end of this year. came to partially support the market Let’s take a look at the guidelines for “ESG funds” that invest in Thailand. In the past period, it was found that The 3-year return is still positive, contrary to the negative trend of the investment market this year, led by the TISESGD fund with a 3-year return of 9.70% per year.
TESG mutual funds are one of the hopes of the Thai capital market at the end of this year. came to partially support the market Let’s take a look at the guidelines for “ESG funds” that invest in Thailand. In the past period, it was found that The 3-year return is still positive, contrary to the negative trend of the investment market this year, led by the TISESGD fund with a 3-year return of 9.70% per year.
This is good news for investors. The government sector 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 stock mutual fund (LTF), but focuses on investing in securities that emphasize ESG issues.
On December 8th at the Office of the Securities and Exchange Commission (SEC), Association of Investment Management Companies (AIMC) and related agencies Preparing to launch the first lot of TESG mutual funds for sale, there will be a total of 22 funds from 16 mutual funds.
There is an expectation that there will be money coming in to invest inTESG Mutual Fund forTax reductions for the year 2023 are set at a target of 10,000 million baht, helping to support the Thai stock market’s atmosphere to improve somewhat. This is a good time for issuing such funds. This is because the level of the Thai stock index has dropped a lot.
In the midst of the Thai stock market fluctuating throughout this year. But at least investing for sustainability (ESG) in sustainable funds in Thailand (ESG funds) can still provide long-term returns of at least 3 years that are positive.
Let’s take a look at the “ESG funds” that give the best returns. Which funds are there? To serve as a guideline in choosing an investment strategy in TESG mutual funds.
Recently, Morningstar Research (Thailand) reported “Top 5 ESG funds investing in Thailand and having the best returns in 3 years” as follows:
1. TISCO ESG Open Fund for Society (TISESGD) has a return (YTD) of -14.46%, a 3-year return of 9.70% per year.
2. KKP SET50 ESG open fund, special savings type (KKP SET50 ESG SSFX) has a return (YTD) of -11.62%, a 3-year return of 8.30% per year.
3. TISCO Thai Stocks Well-being Open Fund (TISCOWB-A) has a return (YTD) of -17.21%, a 3-year return of 7.22% per year.
4. Kind Thai Mutual Fund (BKIND) has a return (YTD) of -11.97 %, a 3-year return of 6.75% per year.
5. K Open Fund Thai governance stocks For a living (K Thai Equity CGRMF) has a return (YTD) of -14.60 %, a 3 year return of 6.00% per year.
Currently, it has a net asset value of 45 billion baht, divided into 22 funds investing in Thai stocks with a net asset value of 2.5 billion baht and investing abroad in 91 funds with a net asset value of 43 billion baht.
It is said that over 94% of ESG funds sold in Thailand are mostly invested abroad. There was a net outflow from the beginning of the year to the present totaling 1.8 billion baht.
Currently, there are only 6 mutual funds that have issued ESG funds that invest in Thai stocks. After this, we will likely see every mutual fund company issuing more ESG funds.
For investors interested in investingSustainable Fund or ESG funds, Morningstar also has a tool called Globe Rating with the symbol “Earth” which assesses sustainability risks. If the fund invests in stocks that have high ESG risks compared to peers in the same group It may also cause the fund to receive a low Globe Rating.
The Globe Rating has a level from 1-5 (5 Globe is the lowest ESG risk), which uses the ESG risk score data of each listed company around the world as evaluated by the company. Sustainalytics is used. Currently, more than 170 listed companies in Thailand have been assessed, covering a wide range of industries.
Sustainable investing around the world
Sustainable investment around the world There is still a continuous decrease in money inflows. which is caused by many factors both inflation Interest rates are high. Including concerns about a possible economic recession. This creates a lot of concern for investors. with net inflows for the entire quarter of only $13.7 billion.
and from the situation of volatility in the world market Global sustainability funds’ net asset value fell 4.2% to $2.7 trillion at the end of September. by the European Sustainable Fund There is still a net inflow of $15 billion.
In addition, the development of new products There is still a continuous slowdown, including issues of greenwashing and strict regulations. As a result, there are fewer funds that include the word ESG in the fund name. Meanwhile Instead, there are more and more funds. that is removing ESG-related words from fund names, especially in the United States
2023-12-02 06:00:00
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