Thailand’s Government Pension Fund expects gold, commodities and a rally in global equities to drive a recovery in its returns after a dismal performance in the first half of the year.
The portfolio is aiming for an annual return of more than 3% in 2025 even after earning 1.19% in the January-June period, said Songpol Chevapanyaroj, secretary-general of the state pension fund. The fund has added to its holdings of gold and commodities as a bet the US trade tariffs and increased geopolitical tension will fuel demand for haven assets, he said.
GPF, which manages 1.47 trillion baht ($58.4 billion) in assets, has also expanded its overseas investments in bonds, stocks and property in an effort to boost performance amid low returns from local equities and debt.
“We are more optimistic about the second half with fewer market swings after the US set tariffs,” Songpol said in an interview in Bangkok on Wednesday. “The downward trend in global interest rates will also bolster investor sentiment for risky assets.”
GPF, which oversees the retirement savings for over a million government employees, more than doubled its holdings of gold to 0.43% of total assets in the six months to June 30, according to the fund’s website. The fund only began investing in bullion in 2022, according to available data going back to 2020.
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The fund still holds about 57% of its assets in international and domestic fixed income securities, unchanged from the end of 2024. It cut its investments in local and overseas equities to 19% of its total portfolio from 22.6% in 2024 amid market volatility in the wake of US tariffs, according to Songpol.
The fund saw a return of 3.5% in 2024, more than double the 1.46% yield from a year earlier. It posted a negative return of 1.5% in 2022, its first investment loss since 2008, on rising volatility in financial markets after the Covid-19 pandemic.
Chart: Bloomberg
