Thailand’s $4.5 Billion Fund Is Buying Stocks, Eyes Derivatives
- Vayupak Fund I is part of an effort to boost confidence
- The fund is gradually shifting from bonds to equities
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Thailand’s recently-launched $4.5 billion state-controlled investment fund has already started buying shares and is considering equity derivatives to protect its capital, according to one of its co-investment managers.
Vayupak Fund I, which raised money from around 50,000 Thai investors last month, will “gradually” invest about 90% of its assets in local equities, said Chavinda Hanratanakool, the chief executive officer of Krung Thai Asset Management Pcl. She is considering expanding the team to boost its expertise in equity derivatives, which the fund will use in the future if it decides the downside risks are too high, she said in an interview in Bangkok.