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February 2025
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Thailand’s one-year-old ESG scheme assets jump almost four-fold to 32 billion baht

Net inflows for ESG funds in the fourth quarter of 2024 was as high as 25 billion baht
By Goh Thean Eu   
January 15, 2025

Thailand’s environmental, social and governance funds scheme assets grew almost four-fold in just one year thanks to government measures that made it more attractive to investors, according to Morningstar.

The 30-plus funds in the scheme ended 2024 with 32 billion baht (US$922 million) of total assets under management, up from 6.5 billion baht when it was launched in December 2023, Morningstar says in a report on January 13.

The scheme provides investors with tax incentives until 2032 to encourage sustainable investment.

In July 2024, the government introduced measures including cutting the holding period from eight years to five years, and raising the tax deduction limit from 100,000 baht to 300,000 baht.

"There was a significant increase in net purchases of Thai ESG funds, especially in the fourth quarter, when the net fund inflow was as high as 25 billion baht," Morningstar says.

Bond funds account for more than half the total assets under management in the scheme or 16.5 billion baht, with an average investment return of 4.59%.

Assets of equity funds were 11 billion baht with an average investment return of 0.85%. The balance 4.5 billion baht of assets are in mixed funds.