Thai ESG X to draw 40% of LTF capital

High-income investors are likely to shift their long-term equity fund (LTF) investments to Thai ESG Extra (ESG X) funds, with roughly 40% of the 150-160 billion baht worth of outstanding LTF capital migrating to these new funds, say fund managers.

- NUNTAWUN POLKUAMDEE

Chajchai Sarit-apirak, managing director and head of Fund Management at BBL Asset Management (BBLAM), said investors in high tax brackets (25% to 35%) are expected to shift their LTF investments to Thai ESG X funds because the stock market index is much lower than when they invested in LTFs, resulting in a huge loss.

He said he expects roughly 40% of current LTF holdings to be transferred to Thai ESG X funds. New investments in Thai ESG X are estimated at 15-20 billion baht.

Anek Yooyuen, deputy secretary-general and spokesperson of the Securities and Exchange Commission, said the 37 Thai ESG X funds have raised a total of 840 million baht from their initial public offerings (IPOs) during May 2-13.