Posted inFund Flows

Thai fund market sees lower outflows

Fixed-term bond funds saw significant inflows on the back of new product launches.
Farmers farming on rice terraces. Ban Pa Bong Piang Northern region in Mae Chaem District Chiangmai Province That has the most beautiful rice terraces in Thailand.

Net outflows from Thai funds in the third quarter fell to Bt25.1bn ($666m) compared with Bt116.1bn in the second quarter, according to the latest data from Morningstar.

For the first nine months, net outflows reached Bt226.5bn.

Fixed income was the asset class that reported the biggest outflows for the third quarter in a row, with Bt10.7bn lost from July to September.

The cumulative net outflows for fixed income funds amounted to Bt236.1bn for the first nine months of the year.

From January to September, short-term bond funds posted the largest outflows at Bt118.2bn followed by foreign investment bond fixed-term funds at Bt78.5bn and mid/long-term bond funds at Bt63.5bn.

However, fixed-term bond fund saw significant inflows in the first nine months at Bt94.3bn, largely on the back of 35 new fund launches in the third quarter.

It overtook money market funds as the asset class with the largest inflows so far this year.

Money market funds posted net outflows of Bt5.2bn in the third quarter, but still recorded Bt53.7bn of net inflows since the beginning of the year.

Money market fund assets were 8.9% higher compared with end of 2021.

Total net asset value, excluding closed-ended, REIT, infrastructure and exchange-traded funds, fell to Bt3.7trn by the end of the third quarter, representing a 13.1% contraction from the end of last year and a decline 2.6% quarter on quarter.

Foreign Investment Funds

Foreign investment funds’ (FIFs) net assets fell by 25.6% for the year to date and dropped 7.4% quarter-on-quarter to Bt879.1bn.

For the first nine months, among all FIFs, foreign investment miscellaneous recorded the largest drop (34.3%) followed by global equity (28.8%) and China equity (24.7%).

After 10 consecutive quarters of net inflows, global equity funds posted net outflows for the first time from July to September, while China equity funds saw weaker inflows of Bt3.6bn.

Thailand fund flows Q1 to Q3 2022

Asset classNet inflow (Bt bn)Asset classNet outflow (Bt bn)
Bond Fix Term+94.2Short term bond-118.2
Money market+53.7Foreign investment bond fix term-78.5
China equity+15.4Mid/long term bond-63.5
Vietnam Equity+13.9Flexible bond-46.7
Global equity+12.0Equity large-cap-30.2
US Equity+11.1Global bond-22.6
Aggressive allocation+4.0Foreign investment miscellaneous-22.4
Capital Protected Fix Term+3.3Conservative allocation-13.2
Country Focus Equity+0.7Miscellaneous-10.0
Rollover Bond+0.4Europe equity-6.6
Source: Morningstar Direct. Data as of 30 September 2022

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