Chavinda Hanratanakool, CEO of Krung Thai Asset Management (KTAM), announced that today (June 30, 2025) marks the final day for the Thai ESG Extra Fund (Thai ESGX), a fund which offers substantial tax benefits while driving sustainable future growth.
KTAM is recommending three Thai ESGX funds as optimal vehicles for both new investments and capital from Long-Term Equity Funds (LTFs).
She emphasized that after the end of the Thai ESGX initiative, LTFs will be phased out and will no longer exist in the system. All LTFs will be transformed into regular mutual funds, under the continued management of professional fund managers to ensure maximum benefit for investors.
However, if after this transition any fund’s net asset value (NAV) declines by more than 35%, those funds will be subject to forced redemption and liquidation in accordance with mutual fund regulations.
KTAM’s three featured Thai ESGX funds are:
- Krung Thai Equity Plus 70/30 Thai ESGX Fund (KTEQ70PLUSX): This umbrella offers two fund types, KTEQ70PLUSX-D and KTEQ70PLUSX-L, both rated at risk level 5.
- Krung Thai Equity Plus Thai ESGX Fund (KTEQPLUSX): This includes KTEQPLUSX-D and KTEQPLUSX-L, both with a higher risk level at 6.
- Krung Thai Dividend Equity Thai ESGX Fund (KTEQDIVX): Comprising KTEQDIVX-D and KTEQDIVX-L, these also carry a risk rating of 6.
Chavinda noted that Thai dividend stocks remain attractive, currently offering an average dividend yield of nearly 5%. Notably, select banking stocks provide yields as high as 8%. As core pillars of the national economy, these stocks stand out on the global stage. The Thai stock market ranks second in the world for high dividend yields, just behind Indonesia.
She further highlighted the strength of the Thai stock market’s diversified structure. The top five stocks represent only 25% of the market capitalization, in contrast to markets like South Korea where the concentration in a handful of large technology firms increases systemic risk.
While Thailand may lack giant tech stocks like some peers, its market is well diversified and many Thai companies are leaders at the regional level, Chavinda concluded.
