Thai ESG X funds garner B32.2bn in investment
Of the amount, 25.1 billion baht came from LTF conversions, while 7.08 billion was new capital.
The converted LTF value represents 79% of eligible LTF holders with portfolios of less than 500,000 baht, highlighting the success of encouraging sustainable investing among retail investors, noted the SEC.
Thai ESG X funds are a government-backed initiative to encourage investment in companies focused on environmental, social and governance (ESG) factors.
The measure also aims to enhance the stability of Thailand's capital markets by offering tax incentives for new investments in Thai ESG X.
"The success of Thai ESG X demonstrates investors' growing interest in supporting Thai listed companies that prioritise sustainability," said Pornanong Budsaratragoon, secretary-general of the SEC.
These funds also incentivise firms still in development to align with ESG standards, in line with the country's sustainable development goals, she said.
According to Mrs Pornanong, the programme represents a coordinated effort between the SEC, the Stock Exchange of Thailand and the Association of Investment Management Companies.
The linked system that verifies LTF holdings across the industry can serve as a foundation for future innovations in investor services, she said.
Thai ESG X funds, which were launched on May 2, offer two tiers of tax benefits. For general investors, investment in Thai ESG X allows a personal income tax deduction of up to 30% of assessable income, capped at 300,000 baht.
Investors must hold the units for at least five full calendar years from the date of investment.
For LTF unitholders as of March 11, 2025 who opted to switch 100% of their LTF units to Thai ESG X funds from May to June, 2025, they can claim up to 500,000 baht in tax deductions over the tax years 2025-29, comprising 300,000 baht in 2025 and 50,000 baht per year in subsequent years.
For example, an investor who switches LTF units worth 380,000 baht to Thai ESG X can deduct 300,000 baht in the 2025 tax year and 20,000 baht annually from 2026 to 2029.
Mrs Pornanong said ongoing market volatility led to new investments in Thai ESG X funds tallying less than 10 billion baht.
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