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Thailand mutual fund industry assets flat in October

By Asia Asset Management  
Nov 12, 2019

Thailand's mutual fund industry assets held steady in October after two consecutive monthly declines as gains in mixed and infrastructure funds helped offset losses in bond funds.

Latest figures from the Association of Investment Management Companies (AIMC) show that the industry had 5.28 trillion baht (US$173.27 billion) of assets as at October 31, unchanged from a month earlier, and up 4.35% from 5.06 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.

Mixed funds, which invest in both stocks and bonds, rose 4.17% month-on-month to 452.38 billion baht in October.

Infrastructure funds, which invest in infrastructure projects, rose 0.58% to 360.08 billion baht.

Bond funds fell 1.16% to 2.56 trillion baht while stock funds were unchanged at 1.47 trillion baht.

According to a fund manager at a Thai asset management firm, the weakness in bond funds was partly due to the low interest rate environment.

"In the equity space, we are seeing under-performance in equity funds that invest abroad versus those that invest domestically. So far, the net effect to the overall equity funds is neutral, but we expect this trend to continue over the near term due to concerns on US-China trade talks," the Bangkok-based manager tells Asia Asset Management, speaking on condition of anonymity.

There were 1,818 mutual funds in Thailand at the end of October, up from 1,649 at the end of 2018.