Thailand’s pension fund curbs risk in new allocation

  • Corporate News
  • Saturday, 02 Nov 2019

BANGKOK: Thailand’s US$30bil Government Pension Fund is lowering exposure to riskier assets in a revised asset allocation for the medium to long term.

The plan involved bolstering exposure to defensive Thai stocks, including those offering higher dividends, as a cushion against any downturn or market volatility, the fund’s head of investment strategy Arsa Indaravijaya said in an interview.

“The new allocation points to a de-risking mode, ” he said in Bangkok. “Risky assets have been shaved off, reflecting a late cycle that we’re moving toward, and we’re allocating some more into private assets like infrastructure and high-grade credits.”

The new asset allocation chimes with concerns that the equity bull market is ageing just as the US-China trade war saps the global economy. The Federal Reserve on Wednesday lowered interest rates for the third time this year as it tries to engineer a soft landing for the US economy.

Arsa declined to give exact details about the revised asset allocation.

He said a recession didn’t appear likely “in the very near future, ” while adding that the pension fund may be more active in hedging against some downside equity-market risk next year. — Bloomberg

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