Bangkok, 17 September 2018 – SEC discloses that the provident fund (PVD) has been continuously growing, as more than 800 employers, more than 75,000 members, and more than 8 percent of the net asset value had increased in a one year period. It is also found that many of the employers had shifted some of their investment into the master pooled fund as an alternative for their members and for more liquidity in their financial management.
SEC
Secretary-General Rapee Sucharitakul said “As of the 2nd quarter of the year 2018, the PVD had been
continuously growing, as the number of employers had increased by 788 to a
total of 17,866 employers, the number of PVD members had increased by 75,992 to
a total of 3,015,729 employers, which can be calculated as an increase of 4.61
percent and 2.85 percent respectively. Furthermore, the net asset value has now
reached a total of 1,100,686 million Thai baht, an 8 percent increase in
comparison to the same quarter of the year 2017. This shows a consistent growth
and an indicative that employers now prioritize provident funds, even though the employers’
contributions are considered expenses, it is however an important welfare for
the future of their employees after retirement.”
Furthermore,
a changing trend can be seen as employers want an alternative for their
employees by cancelling the former provident fund, which only consists of one
policy, and shifting to another type of provident fund which is called the
master pooled fun, which provides employees a number of choices, suiting their
age brackets the best, as well as provides more liquidity to the employers in
their financial management. Within the last 6 months, it was found that 10
employers had shifted into other funds, of which there exist 45 funds from 383
funds. It was also found employers are becoming more interested in Life-Path
type of provident fund, which automatically changes its investment ratios as the
employees become older. In the 2nd quarter of the year 2018, statistics
show that 7 investment management companies and 239 employers had presented the
Life-Path provident fund for their employers as an alternative, which
calculates into a net asset value of 6,087 million Thai baht.
SEC
has partnered with SET, the Association of Provident Fund (AOP), and the Association of
Investment Management Companies (AIMC) to officially launch the program “Happy PVD
Company”, which promotes and encourages companies with provident funds to
become aware of the significance of their employees’ retirement funds. The
program is free of charge and open to registration, for any company with at
least 100 members, to its benefits, such as, seminars, knowledge media, company
public relations, as well as awards for companies who achieved certain
qualifications. More information and application form can be found at www.happyPVD.com/company.