Top Fund Investors Launch Campaign Against Corruption: Thailand

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Top fund investors launch campaign against corruption
Apinya Manchoy
The Nation

BANGKOK: -- Institutional investors have investigated over 500 companies and vowed to pour investment into a select group showing proven good governance, in their bid to boost the private sector's fight against corruption.

Members of the Association of Investment Association Companies (AIMC), the Thai Life Assurance Association (TLAA) and the Association of Securities Companies (ASCO), plus the Government Pension Fund and Social Security Fund, yesterday announced their anti-corruption commitment.

They vowed not to invest in listed companies that lack good governance, social responsibility or were involved in corruption

Together, these institutions, with over Bt6 trillion in combined assets, expect their actions will help lift good governance among listed companies.

Vorawan Tarapoom, president of the Association of Investment Management Companies, which had combined assets of over Bt2.8 trillion as of February, said the association wanted to help enhance standards of the Thai market for international acceptance. As CEO of Bualuang Asset Management, Vorawan said her company had a clear plan to only invest in firms with a promising future and transparency.

"From over 500 listed companies, only 80 are eligible for our investment. Transparency is expected to improve over time," she said.

The Thai Life Assurance Association, with 90 company members, now has over Bt1.9 trillion in assets. Investment in the stock market totals Bt250 billion, said Pravej Ongartsittigul, secretary-general of the Office of Insurance Commission (OIC).

"It has been our policy to pour investment only into companies with proven transparency, to assure clients that their investment is well protected," he said.

For the Government Pension Fund, which has Bt580 billion in assets, the number of eligible companies totals 396. Sopawadee Lertmanuschai, secretary-general of the fund, said these companies must win at least three stars in terms of good governance rating. Others are those included in the SET50 and SET100 categories.

"Listed companies' shareholders meetings will be our focus. We will send our representatives to attend the meetings and we're ready to exercise the rights to veto, if the executives are suspected of non-transparent decisions," she said.

Jeerasak Sukhonthachart, secretary-general of the Social Security Office, said all investor friendly firms show good corporate government and he promised to strengthen the investment criteria. With total assets of over Bt800 billion, the fund invested Bt100 billion in the stock market last year.

"We plan to increase the portfolio investment from 10 per cent of assets to 12 per cent, to cash in on the positive performance of the stock market," he said. SSO's board of directors recently backed an increase in overseas investment by US$400 million, from $700 billion now. Average return this year is expected to reach 7.2 per cent.


-- The Nation 2013-03-12

[NongKhaiKid]

Another corruption " crackdown " ! It sounds like a good idea to invest only in sound, transparent BUT what of those who don't fit the criteria ? TIT so many will have friends, cronies etc in high places and the investment groups will come under pressure to invest in them. Nothing is ever easy or what it seems here

[chainarong]

It's is time for Thailand to wake up and clean up, you just can't be a true player on the world stage, when your country is under suspicion/watch of everything from corporate/ political corruption , WWF issues , child / people smuggling, drug trafficking, street rioting etc, China still has a problem with investors not investing, because of bad corrupt companies in its early days of it's economic revolution , as Mao would say.

[smutcakes]

If you ever met one of the top brass from GPF, Chula, CPB etc you would realize how ridiculous this article is.

[hellodolly]

Sounds to me like the people with the money don't trust Yingluck's battle against corruption.

But hey she is just a mouth piece any how so why would they trust her.

She is flying all over the world talking about the wonderful advantages of investing in Thailand rather than staying at home and trying to make the investments profitable to the investors instead of the Government officials.

If there is to be change it will apparently have to come from the non government segment of the population.

I wish them luck and am a little curious why some don't.

[Bellweather]

Another corruption " crackdown " ! It sounds like a good idea to invest only in sound, transparent BUT what of those who don't fit the criteria ? TIT so many will have friends, cronies etc in high places and the investment groups will come under pressure to invest in them. Nothing is ever easy or what it seems here

I seem to remember when Thaksin, the real one, was around a newspaper who was being critical received a call to say they had just lost out on a lot of advertising for Shin Corp. Same Toilet, Different Day

[belg]

maybe the member companies can put a sticker here on their store window : no corruption, no maffia, no bib welcome here ... and some working cameras inside & outside the shop

[drdoom6996]

Good Governance? They can't be talking about Thailand. From the lowest BIB to the PM there is no such thing as Good Governance in Thailand. Just everyone with their hand out for more money. To hell with the Thai People. I got elected and I want my share of the cash is the new PTP motto.

[fotog]

Thailand has just been upgraded by Fitch to BBB+ and their economy is red hot; but the fact remains that there is much corruption here, so what are some good Thai mutual funds run by good managers that can be purchased locally by Thais?

Being a farang I invest through the U.S, but I was asked to get information for a Thai friend.

[BlackJack]

Thailand has just been upgraded by Fitch to BBB+ and their economy is red hot; but the fact remains that there is much corruption here, so what are some good Thai mutual funds run by good managers that can be purchased locally by Thais?

Being a farang I invest through the U.S, but I was asked to get information for a Thai friend.

Farangs can buy into local funds - just look at morningstar thailand and you will see whats available

the CEO of one of the largest co's in Thailand once told me that the mice must always eat some cheese otherwise everyone is not happy

go figure

[waza]

They have a big job ahead of them, I wish them every success..........

"From over 500 listed companies, only 80 are eligible for our investment. Transparency is expected to improve over time," she said.