Association of Investment Management Companies

Posted Date: 3 August 2017

Thai CG Fund/ Aug 3, 2017

"Thai CG Fund” to launch this year

The 11 asset management firms have jointly established the Thai CG Fund to support the good corporate governance (CG) practice in the capital market. Meanwhile, 40 percent of total fee income will be used to fund the good corporate governance enhancement and anti-corruption effort.

“There are 11 asset management firms joining the initiative, representing 90 percent of total asset under management (AUM)” said Voravan Tarapoom, chairman of the Federation of Thai Capital Market Organization (FETCO) and chairman of Association of Investment Management Companies (AIMC).

The Thai CG Fund is an equity fund with a policy to invest in companies listed on the Stock Exchange of Thailand (SET) and Market for Alternative Investment (mai) with good corporate governance; a company awarded at least the four-star rating from Thai IOD (CGR), and be member of the Collective Action Coalition of the Private Sector Against Corruption (CAC), led by the Thai Institute of Directors Association (IOD).   

The fund will have a committee — one member represents one asset management firm — to jointly make the criteria for CG-focused universe of securities, which all asset management firms will use the same universe.

“Initially, the stock universe of the CG Fund will consist of 103 companies screening from Thai IOD and CAC companies which have been selected to be in the stock universe,” said Voravan, adding that each of 11 asset management companies could select any securities in the basket accordingly to their investment policies and strategies. The list of the stock universe will be review on a yearly-basis. 

In addition, 40 percent of asset management fees from Thai CG Fund will be support to organizations that promote the good corporate governance and combat corruption.

“This CG-focused fund should encourage the listed companies in order to develop good corporate governance practice, while the asset management firms will be the key player to drive sustainable return on investment in the long run,” said AIMC Chairman.

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