GPF reveals strategies to ensure solid investments

Move for stronger ties with members

The Government Pension Fund (GPF) has outlined four strategies this year to deal with the volatile global economy and foster ties with members.

GPF secretary-general Sopawadee Lertmanuschai said the first strategy was to continue providing knowledge to members. Second, it will offer new investment packages during the first half of the year.

Third, it will invest on the basis of long-term strategic asset allocations and highlight its concept of being a good-governance investor. The fourth strategy is to focus on preparing its staff to deal with the increasingly challenging investment climate.

The average age of its members is 44 years, down from between 75 to 80 in the past, Sopawadee said.

As it is harder to find investments with promising yields, the GPF has to adopt strategic asset allocation by investing more in both local and foreign stocks and Asean debentures, including overseas property, she said.

GPF deputy secretary-general Yingyong Nilsena said the fund had a positive view of its investments in stocks. It has noted that the Thai economy is on a growth trend, while the profits of listed companies could grow by 15-20 per cent this year, which could boost the SET Index to 1,500 points. The proportion of the GPF's investment in global stocks is a little bit higher than that in local stocks.

Last year the GPF's net assets surged to Bt577.117 billion, up 10 per cent from 2011. It has generated substantial returns averaging 7.05 per cent per annum over the past 15 years against the average inflation rate of 3 per cent and average bank interest rate of 2.69 per cent. It is confident that this year its returns will beat the inflation rate.