NAV for 2018 rises 0.8% to B5.1tr on eq­uity in­flow


Although fixed in­come funds value dropped 17.7% to 1.7 tril­lion baht in 2018, they con­tin­ued to be the largest seg­ment with 44.2% of the to­tal fund value. For­eign in­vest­ment funds, ex­clud­ing fixed term funds, had to­tal NAV of 572 bil­lion baht last year. Net out­flows amounted to 43.1 bil­lion in 2018, of which 10.7 bil­lion was pulled out dur­ing the fi­nal three months. To­tal net as­set value of Thai­land mu­tual funds ex­clud­ing closed-end funds, real es­tate in­vest­ment trusts, in­fra­struc­ture funds, and ex­change­traded funds fell 8.7% to 3.8 tril­lion baht last year. Eq­uity funds val­ued 1.1 tril­lion baht at the end of last year, up 7.6%, and the growth could be at­trib­uted to the strong inflows. Long-term eq­uity funds’ (LTFs) net inflows last year at 30.6 bil­lion baht was in line with the av­er­age net inflows over the past five years and net inflows to the funds reached last year’s peak at 32.3 bil­lion dur­ing the Oc­to­ber-to-De­cem­ber quar­ter. LTFs’ NAV at the end of 2018 de­clined by 3.8% to 382 bil­lion baht. The bench­mark SET in­dex ended last year, slid­ing 10.8% to 1,563.88 points. Net inflows to eq­uity funds ex­clud­ing LTFs and re­tire­ment mu­tual funds (RMFs) amounted to 83.3 bil­lion baht in 2018. Morn­ingstar’s se­nior re­search an­a­lyst Chaya­nee Jueng­manon said the still wild swings in the stock mar­ket and the up­ward in­ter­est rate trend were to blame for the small net inflows in mu­tual funds last year. She said 161 funds (ex­clud­ing fixedterm funds) were rolled out last year and eq­uity funds re­mained the most pop­u­lar with 104 funds launched. In 2017, 89 eq­uity funds were launched. The 161 new funds drew net inflows of 104 bil­lion baht, of which 52.8 bil­lion were put into eq­uity funds. Ac­cord­ing to a break­down of 104 new eq­uity fund types, there were 25 global eq­uity funds, 22 eq­uity large­cap, 10 Chi­nese eq­uity funds, with other eq­uity cat­e­gories mak­ing up for the rest. There were 19 fixed-in­come funds launched in 2018, down from 23 in the pre­vi­ous year. Of the to­tal 19 funds, 12 were global bond funds. RMFs saw net inflows of 25.7 bil­lion baht in 2018, while those with eq­uity port­fo­lios ex­pe­ri­enced net inflows of 20 bil­lion. The to­tal NAV in­crease for RMFs was 2.9% to 262 bil­lion baht last year. The net as­set value (NAV) of Thai­land’s fund in­dus­try in­creased by 0.8% to 5.1 tril­lion baht at the end of last year, with net inflows in eq­uity funds but net out­flows in fixed in­come funds. Eq­uity funds at­tracted 216 bil­lion baht in net inflows last year, while in­vestors cashed out a net 151 bil­lion from fixed in­come funds largely due to the higher in­ter­est rate trend, ac­cord­ing to Morn­ingstar Thai­land. Eq­uity funds were a pop­u­lar choice among in­vestors, as seen by the fact that the fi­nal quar­ter of 2018 marked the sixth quar­ter of the net in­flow streak.

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