Bond investors include pension/provident funds, asset management companies, mutual funds, commercial banks, government savings banks, insurance companies, savings funds, and corporate and retail investors.

Financial corporations are major bond investors in the Thai fixed-income market. Other bond investors include the Government, household and nonprofit institutions, non-financial corporations, other depository corporations, and foreign investors.

Pension Fund

The Thai pension system is small but complex. There are multiple schemes covering different portions of the work force, but with low overall coverage. Private sector employees are covered by the mandatory Old Age Pension Fund (OAPF). The Social Security Fund (SSF) is managed by the Social Security Office. Thai government officials are covered by the Government Pension Fund (GPF). Local government officials are covered by their own individual schemes. Private teachers are covered by a separate provident fund. The Provident Funds and Retirement Mutual Funds provide voluntarily coverage schemes for corporations and individuals.

The GPF invests a large portion of its holdings in Thai fixed-income assets and is a significant participant in the Thai debt market. Private provident funds are also major investors. Fund investment guidelines stipulate that a portion of provident funds must be invested in bonds issued by the Government and commercial banks. Linked below are the rules of asset management and the Securities and Exchange Commission (SEC) notification on the establishment and management of mutual funds in Thailand.

Insurance Companies

The insurance sector has expanded since licensing reforms were made in 1997. As of February 2008, there were 100 registered insurers (25 life insurance companies). Insurance companies commonly invest in government bonds, state-owned enterprise (SOE) bonds, and promissory notes subject to certain limits.

Asset Management

Asset management companies are also among institutional investors in bonds. Asset management companies and trustees registered with the Securities and Exchange Commission (SEC) can be found by following the links provided below. The SEC link on mutual fund profiles (including fixed-income funds) is also included.

The asset management industry in Thailand has developed in terms of size and product availability. Investment companies continue to develop the industry. The three primary types of funds constituting the market are (i) mutual funds, (ii) private funds, and (iii) provident funds.

At the end of 2007, the SEC reported that there were 41 securities companies, 21 asset management companies, and 3 venture capital companies.