GPF pares domestic investments
The Government Pension Fund (GPF) has revised down its proportion of the domestic investments it has been making through local asset management firms, the better to cope with the recent market volatility.
Its domestic investment is now down to 33.5 billion baht, from 60 billion last year, said secretary-general Sopawadee Lertmanaschai.
She said of the local investment total, 13.5 billion baht is in equities managed by four asset management companies including Krungsri Asset Management and Tisco Asset Management.
The other 20 billion baht is in local debt instruments through two other local asset management firms.
All the local investments are under three-year management contracts.
"The market remains highly volatile on external factors. To be on the safe side, sometimes we need to take action immediately if the market environment changes. We need to be more flexible in managing assets," said Ms Sopawadee.
She said the GPF will use the service of different asset management companies to diversify risks, as they differ in terms of management styles and asset classes.
Deputy secretary-general Yingyong Nilasena said the GPF currently has total investments of 400 billion baht.
The assets are diversified into Thai fixed-income assets (65%), foreign fixed-income assets (9.7%), foreign equities (9.5%), Thai equities (8.8%), Thai properties (3-4%) and miscellaneous.
Mr Yingyong said the GPF could invest more abroad, as its international investments now make up 17%, less than the ceiling of 25%.
Potential destinations are within Asia.