Tisco Asset Management (TISCOAM) is launching an initial public offering (IPO) of an equity fund investing in well-being stocks this week, aiming to reap the benefits of the well-being segment helping to drive Thailand's economic growth momentum.
The fund will begin allocating IPO shares on May 7-15, targeting investment in equities listed on the Stock Exchange of Thailand Well-Being (SETWB) index.
Stocks listed on the SETWB index have growth potential and are competitive in the global business landscape, said Saharat Chudsuwan, head of marketing, wealth advisory, mutual funds and private funds at TISCOAM.
Since Thailand's economic growth is expected to continue recovering in the second half as domestic political uncertainty is anticipated to subside and the new government is projected to launch a new economic stimulus package, the new equity fund is expected to attract foreign investors' interest, Mr Saharat said.
Launched in the beginning of April, the SETWB index consists of listed securities in well-being-related sectors considered key contributors to Thailand's economic growth, including agribusiness, commerce, fashion, food/drinks, healthcare services, tourism/leisure and transport/logistics.
The top 30 stocks with the highest market cap are included in the SETWB index.
At the end of 2018, 129 of the 605 SET-listed companies were engaged in some sort of well-being business, with a combined market capitalisation of 5 trillion baht -- representing 30% of the bourse's total market cap.
Paiboon Nalinthrangkurn, chief executive of Tisco Securities, said it's possible foreign fund flows will return to the Thai stock market in the second half if the country can set up a new government with policies aimed at boosting economic growth.
