Karma is real..!!! The future of Italian-Thai stocks is uncertain as 26 major funds in Thailand have declared their commitment to invest only in stocks with good governance...

          Worawan Tharaphumi, President of the Association of Investment Management Companies, revealed that all 26 member companies of the association have fully declared their intention on January 24, 2018, to adopt investment governance principles for institutional investors as a guideline for their operations and investments. Institutional investors, being a crucial component of the capital market, believe that having investment governance principles will enhance the credibility of investors and the institutions managing investments for both domestic and international investors, thereby creating an environment that fosters good corporate governance and responsible business practices in the Thai capital market. The 26 investment management companies that have made this declaration include Land and Houses Asset Management, Woori Asset Management, SCB Asset Management, Bualuang Asset Management, Asset Plus Asset Management, Thai Military Bank Asset Management, UOB Asset Management, MFC Asset Management, Kasikorn Asset Management, Siam Knight Fund Management, Krung Thai Asset Management, Talus Asset Management, Mertion Partners, Aberdeen Asset Management, Asia Wealth Asset Management, Krungsri Asset Management, Thanachart Asset Management, Phillip Asset Management, TISCO Asset Management, Bangkok Capital Asset Management, Denali Prestige Asset Management, Solaris Asset Management, Phatra Asset Management, Manulife (Thailand) Asset Management, CIMB-Principal Asset Management, and Capital Link Asset Management.

          The President of the Association of Investment Management Companies further stated that the association will collaborate with the Securities and Exchange Commission (SEC) to organize seminars and workshops to prepare for practical implementation, including policy formulation and adherence to principles in each aspect, from selection and investment decision-making to closely monitoring invested companies in cases of incidents or concerns regarding corporate governance. Fund managers may enhance monitoring measures or collaborate with other institutional investors to oversee such companies and push for necessary changes to ensure they adhere to governance principles, aiming for long-term returns that surpass short-term gains. For example, this could involve collectively questioning company directors who misuse insider information for personal gain. This initiative aims to strengthen adherence to governance principles, create sustainable value in invested businesses, and yield long-term returns for investors, while also establishing a governance foundation in the Thai capital market to elevate its governance standards.


Regarding the case of Italian-Thai Development, where executives face charges of poaching in a protected forest area, Worawan Tharaphumi, as the President of the Association of Investment Management Companies, stated that Italian-Thai stocks are not included in the list of Thai governance funds. If found guilty, it will be the responsibility of the company's board to manage the situation internally to demonstrate accountability.

          Rapee Sujaritkul, Secretary-General of the Securities and Exchange Commission (SEC), stated that the declaration of intent by the 26 asset management companies today represents a success that the SEC has aimed for since the announcement of the I Code. It reflects the commitment of operators to manage investments responsibly for the best long-term returns for clients. One of the key practices of the I Code is to monitor invested companies to ensure they can create business value and sustainable investment returns. The SEC encourages institutional investors to use international questioning guidelines as a framework for further inquiries during the upcoming annual general meeting, hoping it will be the starting point for promoting good corporate governance among listed companies, ensuring accountability to society and the environment, which will benefit institutional investors, clients, and the Thai capital market as a whole sustainably.
As for the stock price of ITD, it has declined since the negative news broke on February 6, 2018, closing at 3.72 baht, down 0.14 baht or 3.63%. On February 7, 2018, the price remained unchanged, closing at 3.72 baht.

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