Bangkok, 7 February 2018 ? All of the 26 members of the Association of Asset Management Companies (AIMC) have declared their intention to adopt the Investment Governance Code (I Code) for institutional investors in line with international practice.
AIMC Chairperson Voravan Tarapoom said that on 24 January 2018, all AIMC members, 26 asset management companies to be exact, declared their intention to adopt the I Code as a guideline for work operation and investment.
?Institutional investors are a key component of the capital market. Their adoption of the I Code will enhance trustworthiness of both investors and companies managing assets for investors locally and overseas. This in turn will help to create a favorable environment for good corporate governance and encourage responsible business operation,? she added.
The 26 I Code endorsers are (1) Land and House Fund Management Co., Ltd., (2) One Asset Management Ltd., (3) SCB Asset Management Co., Ltd., (4) BBL Asset Management Co., Ltd., (5) Asset Plus Fund Management Co., Ltd., (6) TMB Asset Management Co., Ltd., (7) UOB Asset Management Co., Ltd., (8) MFC Asset Management Plc., (9) Kasikorn Asset Management Co., Ltd., (10) Siam Night Fund Management Securities Co., Ltd., (11) Krungthai Asset Management Plc., (12) Talis Asset Management Co., Ltd., (13) Merchant Partners Asset Management Co., Ltd., (14) Aberdeen Asset Management Co., Ltd., (15) Asia Wealth Asset Management Co., Ltd., (16) Krungsri Asset Management Co., Ltd., (17) Thanachart Fund Management Co., Ltd., (18) Phillip Asset Management Co., Ltd., (19) TISCO Asset Management Co., Ltd., (20) Bangkok Capital Asset Management Co., Ltd., (21) Denali Prestige Asset Management Ltd., (22) Solaris Asset Management Co., Ltd., (23) Phatra Asset Management Co., Ltd., (24) Manulife Asset Management (Thailand) Co., Ltd., (25) CIMB-Principal Asset Management Co., Ltd. and (26) Capital Link Asset Management Ltd.
AIMC will cooperate with the SEC Office to organize seminars and workshops on the I Code principles and guidelines for policy making, from investment decision-making to close monitoring of invested companies. Fund managers can also contribute by improving monitoring measures or teaming up with other institutional investors to oversee the investees, encourage them to seek solutions or make changes based on good corporate governance principles to create long-term benefits rather than short-term gains. Such measures can include, for example, an inquiry on a company director's exploitation of inside information.
The I Code adoption will help to create sustainable values of the invested enterprises, long-term gains, and a good governance foundation for the Thai capital market.
SEC Secretary-General Rapee Sucharitakul said: ?The declaration of intent of the 26 asset management companies is a milestone for promoting good corporate governance as it reflects their commitment to responsible investment management for the best interest of investors. One of the I Code key principles is to monitor invested companies and create enterprise value and returns on investment in a sustainable manner. Institutional investors are advised to apply questions posted by their foreign counterparts at the upcoming annual general shareholders? meetings. The SEC expects this to be a good start toward tangible progress in good coporate governance of listed companies whereby environmental and social responsibilities will contribute to sustainable benefits for institutional investors, clients and the Thai capital market as a whole.
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Remarks:
- There are 41 institutional investors who have already declared their intention to adopt the I Code, spanning from Government Pension Fund (GPF), the Social Security Office, the Thai Investors Association, one foreign company, 11 insurance companies and 26 asset management companies.
- Foreign institutional investors? guestion guidelines are available at http://www/cgthailand.org/microsite/example.html.