Bangkok, March 26, 2014 ? Institutional investors announced proxy voting guidelines aiming to boost quality and sustainable growth of listed companies and the Thai capital market. The institutional investors joined forces today comprising the Social Security Office (SSO), the Government Pension Fund (GPF), the Association of Investment Management Companies (AIMC), the Association of Thai Securities Companies (ASCO), the Thai Life Assurance Association (TLAA), and the Thai General Insurance Association (TGIA). 

Following their first declaration of intent of collective anti-corruption on March 11 last year, the institutional investors this year pushed for more concrete cooperation in determining proxy voting guidelines to promote good corporate governance, corporate social responsibility and anti-corruption in listed companies and capital market industry.

The proxy voting guidelines describe roles of the institutional investors in monitoring businesses in which they invest; to illustrate, for instance, determination of investment policy, regular company performance monitoring, discussion with company management, exercise of voting right at shareholders? meeting and giving emphasis to reasons or necessity of proposal as well as long-term benefit to company or shareholders.  As from the upcoming 2014 annual general shareholders? meeting, the institutional investors committed to implement the announced proxy voting guidelines.  

Vorrapol Socatiyanurak, Secretary-General of the Securities and Exchange Commission, Thailand (SEC) said that ?The institutional investors? attempt to set precedence in exercising their voting rights to promote quality of investment in listed companies is admirable and in consistence with the SEC?s Sustainability Development Roadmap. The announcement of proxy voting guidelines today affirms integrated collaboration of the institutional investors which will bring about even more solid self and market disciplines to drive capital market industry. For retail investors, the SEC published a handbook called ??Guidelines for Shareholders? Meeting?, now available in the SEC?s media channels, to help prepare them for shareholders? meetings and monitor listed companies? performances.?

Pravej Ongartsittigul, Secretary General of the Office of Insurance Commission (OIC) said that ?The OIC and insurance industry continually support good corporate governance, corporate social responsibility and anti-corruption. While the OIC joined the institutional investors? declaration of intent of collective anti-corruption and determination of guidelines for institutional investors? practices and investments, the TLAA and the TGIA become a part of the Thai Institute of Directors Association (Thai IOD)?s Private Sector Collective Action Coalition Against Corruption Council or CAC.  The OIC trusts that announcement of proxy voting guidelines today will set standard of good practices to drive sustainable development for insurance industry, listed companies and the Thai capital market in line with international counterparts. Moreover, today?s announcement will not only help build up confidence and positive perception in Thai financial industry, but also raise level of transparency for our country.? 

Charamporn Jotikasthira, President of the Stock Exchange of Thailand (SET) said that ?The SET is delighted to support institutional investors? announcement of proxy voting guidelines at shareholders? meetings. Emphasizing on the institutional investors? roles of shareholders will certainly be a wake-up call for listed companies to improve their corporate governance practices. The institutional investors? move today is in line with the SET policy which has long been given priority to elevate quality of listed companies to be on par with internationally accepted standards. Together with the institutional investors? awareness of importance of good corporate governance, announcement of clear proxy voting guidelines will push for better listed company quality. Meanwhile, the guidelines will also be beneficial to other shareholders in making their own investment.? 

Ammorn Chaovalit, SSO Secretary-General said that ?The SSO manages larger than 1.1 trillion baht in assets of social security fund and compensation fund, over 90,000 million baht of which accounts for investment in shares. The SSO realizes an importance of encouraging listed companies to make fair and transparent information disclosure to shareholders, present reliable financial reports and have appropriate number and qualification of independent directors. As representatives of the six institutional investors, having responsibility to manage more than 7 trillion baht of public savings, we are obliged to perform professional investor?s role in monitoring investee businesses for the utmost benefit of listed companies and steady return for public savings in the long run.      

Sombat Naravuthichai, GPF Secretary General said that ?Government officials nationwide have trusted the GPF to manage around 630,000 million baht of assets. The GPF totally agrees with the proxy voting guidelines at shareholders? meetings announced today. The guidelines will support the institutional investors? collaboration in playing a role of business owners which will eventually help lift up corporate governance, prosperity and fairness to all shareholders.?

Somjin Sornpaisal, AIMC Chairman said that ?The AIMC is confident that adoption of proxy voting guidelines will raise level of transparency and clarity in investment decision procedures of the AIMC members. In addition, the guidelines will serve as an enabler for the members? contribution in reinforcing corporate governance and responsibility to shareholders, unitholders as well as society and environment.?

Pattera Dilokrungthirapop, ASCO Chairperson said that ?Securities companies are financial intermediary giving investment advice and disseminating analysis reports and information of listed firms to investors. Hence, the ASCO and securities company members always place high importance on corporate governance and corporate social responsibility. For securities companies? proprietary trading portfolios of 45,000 million baht, the ASCO will encourage our members to apply the guidelines in exercise of their votes at shareholders? meetings in order to fortify good governance in listed companies governance and market confidence .?

Busara Ungphakorn, TLAA Director said that ?As of 2013, total assets under management of life assurance businesses stood at 1.63 trillion baht, most of which came from insurance premiums to be returned to the insured or beneficiaries according terms and conditions of insurance policy. The TLAA fully supports life assurance firms to follow the proxy voting guidelines by voting for fair and useful agenda and against those with unfairness and non-transparency. The implementation of guidelines will enhance creditability of life assurance firms and foster the growth and prosperity of listed companies and the Thai capital market.?

Anon Vangvasu, TGIA President said that ?the TGIA has continuously promoted good corporate governance and best practice of insurance companies. The Association disseminated handbook written specifically for insurance companies throughout the industry to urged them to join force in creating customer and policy holder confidence. Especially during the turning point, insurance companies need to have sound financial conditions and efficient business operation. Accordingly, the TGIA supports listed insurance firms to apply the proxy voting guidelines at shareholders? meetings by backing agenda beneficial and fair to all shareholders that will lead to stable and sustainable business performance. From 218,000 million baht of total investment in 2013, revenue from investment of insurance industry surpassed 6,700 million baht, an increase of 11% compared to the previous year. It is expected to increase every year.?