Thailand’s Biggest Mutual Fund Embraces Artificial Intelligence to Avoid Being Disrupted

October 22, 2019 | Artificial Intelligence, News

SCB Asset Management Company, the largest mutual fund company in Thailand, wants to offer new funds using AI technology.

SCB Asset will utilize cutting-edge tools such as artificial intelligence, data analytics and programmed trading to identify and offer new equity funds. These funds will invest in overseas equities and generate higher fees.

CEO Narongsak Plodmechai leads SCB Asset, which oversees about 1.5 trillion baht ($ 50 billion) of assets. The fund is seeking to retain existing clients as well as attract new customers.

Technology as a defense

“Before being disrupted, we have to create our superstar funds using advanced technology,” Narongsak said in a Bloomberg interview. “We are building robot trading and data analytic systems that will take us to new landscapes.”

SCB Asset is also safeguarding from size. Research shows that the growth of Thai mutual funds plateaus after reaching a size of 5 trillion baht. New innovative products will keep the growth fires burning.

Narongsak is developing his own AI model internally. SCB Asset traders will use it to trade equities in the Southeast Asian markets initially. It will later expand globally. This model will crunch information such as economic data, corporate earnings, news and regulations to deliver trading opportunities.

New international equity funds, using AI, could attract customers willing to pay higher fees. Already SCB Asset has restructured itself so that lower fees funds constitute 60% of assets, down from 85% in 2017.

New, innovative plans

Narongsak plans to float hedge funds once regulators allowed the entities in Thailand. He also plans to embark on short-term equity trading strategies that will boost funds’ performance.

[Related Story: Mutual Fund Giant Vanguard to Test P2P FX Trading with Blockchain  ]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

Subscribe


Alt Insights

November 20, 2019

Prison For the Man Who Tried to Scam The Mooch

Prison For the Man Who Tried to Scam The Mooch
Shape

Latest Alternative Investment News

Bitcoin Plunges to Sub-$7000 Levels Before Recovering
November 22, 2019     Digital Assets, News

Bitcoin plummeted today after back-to-back crackdowns on virtual currencies by the Chinese Government. Yesterday, regulators in Shenzen, and today, in Shanghai, threatened to crack down on alleged illegal activities. The…

London Stock Exchange and PrimaryBid To Democratize Public Equity Offerings
November 22, 2019     FinTech, Latest News, News

The London Stock Exchange (LSE) has tied-up with fintech PrimaryBid to give retail investors access to share offerings. PrimaryBid’s internet-based investment platform will allow retail investors to digitally access share…

Ray Dalio Is Shorting the World
November 22, 2019     Hedge Funds, Investments, News

Hedge fund manager Ray Dalio is shoring the markets. The largest hedge fund in the world – Bridgewater Associates – has a $1.5 billion bet that the markets will fall…

A UK Legal Task Force Clarifies on Cryptoassets and Smart Contracts
November 22, 2019     Digital Assets, News

A UK Jurisdiction Task Force has issued a legal statement on cryptoassets and smart contracts. Issued under the aegis of the Law Tech Delivery Panel, the document is a result…