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November 2022
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Thai fund industry records 132.2 billion baht inflows, mostly into China, global equities

Thailand
The highest inflow – 78.5 billion baht – was into China equity funds, followed by global equity funds, which drew 68.5 billion baht
By Goh Thean Eu   
October 20, 2021

Thailand’s fund management industry recorded a net inflow of 132.2 billion baht (US$2.85 billion) in the first nine months of the year, with most of the money going into Chinese and global equity funds, according to Morningstar.

The highest inflow – 78.5 billion baht – was into China equity funds, while global equity funds attracted 68.5 billion baht, the financial data provider says in a report on October 19.

Money market funds and large-cap funds didn’t fare well, with net outflows of 123.3 billion baht and 31.9 billion baht, respectively.

According to a Bangkok-based fund manager, the current quarter is expected to be strong because investor sentiment is becoming better as the number of coronavirus cases in the country declines.

“With the Covid-19 situation improving in Thailand, we expect it to have a positive impact on investors’ sentiment,” the fund manager tells Asia Asset Management, speaking on condition of anonymity.

Daily new cases have been on a downtrend from a peak of 20, 902 on August 19, and was roughly half that number on October 18.

Kasikorn Asset Management, Thailand’s largest fund manager, drew the biggest share of inflows – 33.7 million baht – in the nine months through September.

But SCB Asset Management, the second largest asset manager, recorded the largest net outflow of 26.8 million baht.

Other asset managers which had inflows were Krung Thai Asset Management, 31.6 million baht and Krungsri Asset Management, 26.1 million baht, while BBL Asset Management and Singapore-based UOB Asset Management recorded outflows of 16 million baht and 6.7 million baht, respectively.

Thailand’s fund management industry had 5.3 trillion baht of assets as of end-September, up 4.8% from 5.06 trillion baht at the end of 2020.

Morningstar Senior Research Analyst Chayanee Juengmanon says industry assets could continue to rise in the fourth quarter.

"The reopening of economy may support investor confidence in Thai equity funds while vaccination continues. Although investors show some cautious view on China equity funds as seen a slowdown of net inflow in the recent quarter, global equity funds remains one of investors’ interest. The growth may also be driven by the inflow of tax saving funds, especially retirement mutual funds," she tells AAM.