The SET remains an attractive investment opportunity to the GPF, as Thai equities have traded below their intrinsic value for more than three years.
The Government Pension Fund (GPF) plans to focus on investments in artificial intelligence (AI) and Thai equities, which it views as safe havens amid global market volatility.According to Soraphol Tulayasathien, the newly appointed secretary-general of GPF, despite heightened investment risks over the past seven months, the fund's portfolio has delivered returns of 7.2-7.3% this year. He said he is confident GPF's diversified investment strategy will enable it to maintain at least this level of return for the full year.
A return of 7.2-7.3% is satisfactory and higher than last year's performance, said Mr Soraphol. The fund's primary objective remains to generate long-term returns that outpace inflation.
Under its standard investment strategy, the GPF maintains appropriate portfolio diversification, while members who wish to increase their exposure to Thai equities may allocate up to 35% of their investments to the domestic stock market on a voluntary basis.
The global equity market over the past year has been driven primarily by the AI boom. Recognising AI as a structural transformation capable of enhancing productivity, GPF made significant investments in the sector, including semiconductor manufacturers as well as South Korean memory chip producers such as Samsung and SK Hynix, both of which have order backlogs extending as far as two years, he said.
