The state fund of Thailand, known as Vayupak Fund (VAYU1), made its debut on the Stock Exchange of Thailand (SET) on Monday.
Key Takeaways
- Vayupak Fund (VAYU1) is a Thai state fund with a value of 150 billion baht.
- VAYU1 has generated significant interest since its launch, raising 130 billion baht from institutional investors and 20 billion from retail investors.
- Half of its portfolio is invested in SET50 stocks, 40% in government bonds, and the rest in corporate bonds.
The fund, valued at 150 billion baht, is expected to boost the daily trading value of Thai stocks and help prevent price declines amid unfavorable external factors.
Chavinda Hanratanakul, CEO of Krungthai Asset Management and fund manager, explained that VAYU1 aims to attract new investments to the Thai stock market.
VAYU1 has generated significant interest since its launch, raising 130 billion baht from institutional investors and 20 billion from retail investors.
The fund focuses on investments in Thai stocks, targeting companies with strong fundamentals, solid corporate governance, and long-term value.
Half of its portfolio is invested in SET50 stocks, 40% in government bonds, and the rest in corporate bonds with credit ratings of A or higher.
On October 9, the fund saw a 1% increase in morning trading, ending at 10.10 baht by noon, surpassing the overall SET increase of 0.3%, with a trading value of 2.55 billion baht. However, its rise was smaller compared to Pluk Phak Praw Rak Mae (OKJ), which debuted the previous Friday and rose by 10.4%.
Apichart Phubancherdkul, head of strategic research at Tisco Securities, explained that VAYU1 will help stabilize Thai stocks as foreign investors adjust their portfolios due to global factors such as the depreciation of the baht and geopolitical tensions. According to Asia Plus Securities, foreign investors were net sellers in several Asian markets, including Thailand.
Finance Minister Pichai Chunhavajira added that the fund has shown that confidence has returned to the Thai stock market, and he anticipates more capital will flow into the exchange in the near future. He also highlighted that both local and foreign investors are considering shifting their investments to capital market assets due to low interest rates.
