Marijuana or hemp has become more and more talked about in Thailand recently. This is the result of the government of Thailand allowing the use of this plant following the legal framework of many countries around the world.
Cannabis-Hemp – Similarities and Differences
Many of you may already know the difference between marijuana and hemp. Which, although it is the same family, has different characteristics. The exterior has different characteristics, such as stems and leaves, and contains essential substances in the cannabinoid group. (Cannabinoid) Two types are THC (Tetrahydrocannabinol) and CBD (Cannabidiol) in different amounts. Hemp has higher THC but lower CBD than hemp, both of which have soothing properties. Reduce anxiety, but THC can cause side effects such as dry mouth and fast heartbeat. And affect the brain’s functioning, while CBD has almost no side effects. Therefore, CBD shop, which has less THC but more CBD, is interested in extraction and uses such as medicine.
Overseas cannabis market
Thailand has adjusted the rules to allow this plant to be used legally. This is in line with many countries, such as the US and Canada. People are consuming from markets where there are legal products. Quality and safety add more industrial value. From market data (Legal) In the US, Morning Star is estimated to be worth more than 300 billion baht in 2020 and is expected to increase to 2.5 trillion baht or more than eight times in 10 years or by 2030. It includes the value of recreational marijuana, also known as recreational use. This may contain details of licensing laws that vary from state to state.
Investment through mutual funds
As a result, cannabis-related businesses are starting to gain more and more attention. Thailand has begun to see some products related to this plant. This interest is beginning to resonate in terms of investment as well. The number of cannabis funds worldwide began to increase during 2017-2019.
There is a cannabis-hemp-related fund for Thai investors to choose to invest in, namely the MFC Global Cannabis Fund (MCANN) from MFC Asset Management. This fund will invest in the primary US ETFs. 2 stacks are
- Amplify Seymour Cannabis ETF (CNBS) with an actively managed investment policy in companies with at least 50% revenue on cannabis and CBD shop in medicine, agriculture, and investment finance. As of May 14, 2021, the portfolio invested in 33 stocks with a turnover ratio of 94%.
- The Global X Cannabis ETF (POTX) is passive management or passive management that delivers performance aligned with the Solactive Cannabis Index, which includes cannabis and hemp businesses such as cultivation, extract products, pharmaceutical production, and related financial services Overall, it’s pretty much in line with CNBS, with its portfolio as of May 14, 2021, invested in 25 stocks with a turnover ratio of around 60%.
Another fund is a fund from Asset Management Co., Ltd. V is We Cannabis Business (WE-CANAB), which also invests 40% in the Global X Cannabis ETF (POTX), and the remaining 60% is invested in passive investment ETFMB Alternative Harvest ETF (MJ). To bring returns similar to the Prime Alternative Harvest Index, this index invests in medicinal or recreational cannabis. Including tobacco products Portfolio on May 17, 2021, invested in 30 stocks, turnover ratio of 46%.
Investing in cannabis – CBD shop is new for many investors. Before starting to invest, it is essential to study and understand in detail, for example, what business the fund invests in this plant’s supply chain. This may bring different values and amending laws that will directly affect the production and distribution of cannabis. As for the risk in this type of fund, it is highly concentrated in the industry. Therefore, it may be riskier than stock funds that are diversified into several businesses at certain times.