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7.1 Financial Instruments for Social Enterprises

Financial instruments available to social enterprises in Thailand typically take the form of equity
or loans, which are already well understood. However, fund-based securities remain relatively
new. This section highlights selected funds that operate within the social investment market.
The key examples are as follows:

The Thai Corporate Governance Fund (TCG Fund) is a long-term mutual fund established to
promote investment in the securities of listed companies that adhere to strong corporate
governance and anti-corruption principles. Eligible companies must have received a corporate
governance rating of at least four stars from the Thai Institute of Directors (Thai IOD) and be
certified by the Private Sector Collective Action Coalition Against Corruption (CAC). The
performance of these companies is continuously monitored (Thai Corporate Governance Fund,
2024). Notably, 40% of the fund’s management fees are allocated to support governance and
anti-corruption initiatives. This funding is used to strengthen networks and enhance the long-
term effectiveness of anti-corruption efforts. The allocation process is overseen by a committee
comprising representatives from participating asset management companies, who are

responsible for selecting projects and organizations that align with the fund’s objectives. Hand
Social Enterprise Co., Ltd. manages the selected initiatives (Thai Corporate Governance Fund,
2024). The fund was established through a collaboration between the Federation of Thai Capital
Market Organizations, the Association of Investment Management Companies, and 11 asset
management firms. These entities partnered with the Anti-Corruption Organization of Thailand,
the Khonthai Foundation, the Thailand Development Research Institute (TDRI), and
ChangeVentures to create an investment option for impact investors interested in companies

with strong governance and no ties to corruption. Each of the 11 firms independently manages
and operates its own version of the fund (Thai Corporate Governance Fund, 2024). Collectively,
the funds hold 13 securities. Further details are available on the fund’s official website. Investors
in the TCG Fund are eligible for a 30% tax deduction, applicable under both the Super Savings
Fund (SSF) and the Retirement Mutual Fund (RMF) schemes. In addition to long-term returns,
investors benefit from reduced exposure to market volatility through professional fund
management.

The Khon Thai Jai Dee Fund, or BKIND Fund, is a mutual fund that focuses on investing in

companies that demonstrate social responsibility, particularly in the areas of environmental
sustainability, social impact, good governance, and anti-corruption. It was established to
support investments that generate positive social and environmental outcomes in Thailand. The
fund invests in shares of companies listed on the Stock Exchange of Thailand (SET) and the
Market for Alternative Investment (MAI). Its investment policy requires that at least 80% of the
fund’s net asset value be invested in equities each year. In addition, the fund donates 40% of its
annual management fees to charitable organizations or foundations that contribute to Thai
society. Investors in the BKIND Fund are eligible for government tax benefits, allowing them to

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