The Vayupak Fund is demonstrating robust performance, with projections indicating it will achieve an approximate 6% return for the current year. This positive trajectory is underpinned by strong operating profits from the previous year and a favorable outlook for the ongoing fiscal period, according to Tibordee Wattanakul, director-general of the State Enterprise Policy Office (Sepo). These financial gains are expected to support forthcoming distributions to the fund’s unitholders.
Vayupak Fund’s Financial Performance and Distributions
The fund’s earnings are calculated based on its fiscal year. In the preceding fiscal year, the Vayupak Fund delivered a return of 6.09%. The profits generated during that period, totaling 18 billion baht, are slated for distribution to investors this year. The current year’s performance is also showing considerable strength, driven significantly by a recovery in the domestic stock market, Mr. Tibordee explained. Profits realized in the current year are earmarked for distribution to investors in the subsequent year.
Mr. Tibordee expressed confidence that the fund is well-positioned to replicate its success, anticipating returns of around 6% once again this year. He attributed this optimism to the fund’s effective management strategies and the generally supportive conditions within the capital market, suggesting minimal cause for concern regarding its performance.
Strategic Investment and Corporate Governance
The Vayupak Fund continues to serve as a crucial instrument for generating stable returns for both the Ministry of Finance and its unitholders. Its success is bolstered by favorable market dynamics and a deliberate investment strategy. This strategy prioritizes investments in companies that exhibit strong corporate governance (CG) practices. Such a focus is anticipated to foster sustainable, long-term returns that align with the fund’s overarching objectives.
Improvements in CG standards, as evidenced by CG ratings, are contributing to the enhanced value of the fund’s assets. However, Mr. Tibordee acknowledged that state enterprises, particularly those where the ministry holds a significant stake, may encounter certain inherent limitations in achieving the highest CG scores. This is often due to the necessity of adhering to government policies, which can sometimes influence appointments or operational practices.
For instance, the selection of a board chair might be based on an individual’s official position or established governmental procedures rather than solely on CG principles. Despite these challenges, these organizations are actively working to elevate their governance standards. The emphasis is increasingly placed on CG performance within their evaluation frameworks, aiming to bolster confidence among both service users and investors operating within the capital market.
State Enterprise Investment and Revenue Remittances
Beyond the Vayupak Fund’s performance, Mr. Tibordee also provided an update on state enterprise investment expenditure. The targeted investment disbursement for the current year stands at 238 billion baht. As of May, a significant portion of this budget, 43%, had been disbursed, marking a 4% year-on-year improvement in the pace of spending.
He projected that the total disbursement for the year is likely to reach at least 95% of the allocated budget. To ensure diligent oversight, the Ministry of Finance has directed Sepo to conduct monthly monitoring of state enterprise investment spending. This proactive approach aims to keep the disbursement process on track and identify any potential bottlenecks.
Regarding revenue remittances from state enterprises to the national Treasury, Mr. Tibordee reported that the target for the current fiscal year is 180 billion baht. Current estimates suggest that actual remittances will surpass this target, potentially reaching 200 billion baht—an excess of 22 billion baht. To date, state enterprises have remitted 160 billion baht, with an additional 40 billion expected to be transferred before the end of September, ensuring the Treasury meets its revenue goals.
Conclusion
The Vayupak Fund’s projected 6% return for the year highlights its consistent ability to generate value, supported by a recovering stock market and a strategic focus on good corporate governance. While challenges in aligning CG with government policies exist for some state enterprises, efforts are underway to enhance transparency and investor confidence. Furthermore, state enterprises are demonstrating progress in both investment disbursement and revenue remittances, contributing positively to the national economy.
