Thailand's mutual fund industry assets rose 6.23% in the first half of 2019, including a 1.51% gain in June, driven by stocks and bonds.
Latest figures from the Association of Investment Management Companies (AIMC) show that the industry’s assets stood at 5.37 trillion baht (US$178.58 billion) as at June 30, up from 5.29 trillion baht a month earlier, and 5.055 trillion baht at the end of 2018.
AIMC comprises licensed mutual fund companies in Thailand, including foreign firms. The group typically publishes the data on its website without providing analysis.
Equity funds rose 4.79% month-on-month to 1.53 trillion baht in June, and were up 6.25% from the beginning of the year.
According to a fund manager at a Malaysian asset management firm, Thailand’s stock market was bolstered by political stability following the country’s general election.
"Political friction between newly-elected Prime Minister Prayut Chan-o-cha and rivals has been low since he emerged as winner during the recent election. The stability is partly why foreign investors were net buyers of Thailand equities in June," the Kuala Lumpur-based fund manager tells Asia Asset Management, speaking on condition of anonymity.
Bond funds were flat at 2.66 trillion baht last month and were up 5.98% since January.
Mixed funds, which invest in both stocks and bonds, climbed 1.91% to 399.37 billion baht in June and gained 13.3% through the first half of the year.
Infrastructure funds fell 0.58% to 344.79 billion baht last month and were down 0.39% since January. These are funds which invest in domestic infrastructure projects.
There were 1,776 mutual funds in Thailand at the end of June compared to 1,649 at the end of 2018.