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The Stock Exchange of Thailand (SET) will include a given infrastructure fund under the sectoral index which is most relevant to its investments, while real estate investment trusts (REITs), a new financial instrument for property investment, will be listed in the same sector as property funds. Both types of funds will be included in SET Index calculation to represent the whole market movement.
Kesara Manchusree, a SET Executive Vice President and Head of the Markets Division, said, “The Thai bourse is ready to welcome a series of infrastructure funds to be listed and will include these new products in the sectoral indices most relevant to their investments. For example, BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF) will be listed in the transportation and logistics sector. REITs will be listed in the property fund sector. From 2014 onwards, there won’t be any new property fund, only REITs can be established.”
“Classifying infrastructure fund into its related sectoral index will help investors compare fund vs. company performances, as they share the same fundamentals, especially in terms of particular industry group and sector. However, the Thai bourse may review its sector classification if there are significant number of listed infrastructure funds, due to rising demands for funds for infrastructure development to support the country’s economic growth,” Kesara added.
The Thai bourse regularly reviews its sector classification through discussions with index users and comparing its current practice against those in foreign markets to better serve investors’ needs and better reflect market situations. At present, there are 27 SET sectoral indices and 8 SET industry group indices. The Thai bourse expects to launch a new sectoral index, that for the construction services companies, separated from the property development sector, in early 2014.
