ONEAM ESG fund return is the leader in its category

One Equity Thailand ESG Fund (ONE-THAIESG) has generated the highest return in the Thai ESG fund (TESG) category at 8.53% year-to-date, according to the fund.
The fund is managed by One Asset Management (ONEAM), which attributed the healthy return to the Thai stock market’s continued recovery after the US Federal Reserve cut its policy rate, as well as the nation’s economic rebound.
TESG funds are long-term, open-ended savings mutual funds focusing investments in sustainable assets issued by the public and private sectors.
The funds offer tax incentives for individual taxpayers, aiming to promote sustainable investments as proposed by the Finance Ministry.
Investors can deduct up to 30% of their assessable income, not exceeding 300,000 baht, for investments in TESG funds.
Investors are required to maintain the investments for at least eight years from the purchase date.
TESGs were initially launched on Dec 8, 2023, with 22 funds from 16 asset management firms.
There were more than 30 TESG funds by the end of 2023.
ONE-THAIESG was launched last year.
ONEAM chief executive Pote Harinasuta said ONE-THAIESG generated outstanding returns in its category, noting tax-deductible funds are popular investments towards the end of the year.
SALES PROMOTION
As the year-end approaches, ONEAM plans to organise a sales promotion to increase the value of investments beyond tax deductions, he said.
He said unitholders who invest in ONE-THAIESG will receive units worth 20 baht of ONEAM’s 1 A.M. Daily Fund Class RA (1AM-DAILY RA) for every 10,000 baht of investment. Investors can receive up to 600 baht worth of investment units of 1AM-DAILY RA.
The promotion runs from Nov 11 to Dec 30, with a minimum required investment of 2,000 baht for first-time investors in ONE-THAIESG.
The company reduced the management fee by more than half.
BRIGHT OUTLOOK
Mr Pote said the Thai stock market’s outlook has recovered, with signs of an increase in earnings per share (EPS) this year in communication, real estate, food, banking and energy stocks.
As a result, the Stock Exchange of Thailand’s (SET) net profit can increase year-on-year, he said.
Net profit is expected to increase for the fourth consecutive quarter, supporting profit estimates that the Thai bourse already passed its low point for this year, according to ONEAM.
However, investors should be careful of short-term profit-taking, said Mr Pote.
ONEAM sees this as an opportunity to accumulate stock funds that can pay good dividends as well as funds that offer tax deductions, especially during a period when the SET index is adjusting down.
The brokerage raised its SET index target this year to 1,470 points from 1,430 and predicts a target of 1,640 points in 2025, with an estimated EPS of 12.4%.
Mr Pote said based on current information, this is the last year investors will be able to purchase super savings funds (SSF), which is an another investment type used for tax deductions.
ONEAM recommends its One Ultra Income Plus Fund (ONE-ULTRAPLUS) to reduce taxes. This fund has yielded investment returns of 9% since its establishment.
Fund investors who hold 4,500 units or more receive life insurance and health insurance benefits.
The insurance premiums are subject to the terms and conditions of the life and health insurance policies of Muang Thai Life Assurance Plc.
In addition, investors interested in ONE-ULTRAPLUS-ASSF, which is an investment in non-dividend savings units, are also entitled to the sales promotion.
Unitholders of ONE-ULTRAPLUS-ASSF receive 1AM-DAILY RA fund units worth 20 baht for every 10,000 baht of investment, up to a 400-baht maximum.
Unitholders of the SSF are entitled to a tax deduction of up to 30% of assessable income, or up to 200,000 baht.