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Thai fintech firm aims to launch quant-type fund

The Bangkok-based startup is expected to launch a fund product driven by the firm's stock-ranking algorithm.

The asset management arm of Jitta, Jitta Wealth Asset Management, is currently in the process of obtaining a fund licence from Thailand’s Securities and Exchange Commission and is expected to operate in the second quarter this year, according to Trawut Luangsomboon, CEO and co-founder.

The firm plans to launch a fund that uses the Jitta stock ranking strategy. The product aims for index-beating returns over the long term, Luangsomboon said in a statement issued by Beacon Venture Capital, the venture capital arm of Kasikornbank, which led a funding round of $6.5m for Jitta this month.

The strategy involves the firm’s stock-ranking algorithm, which makes use of big data technology to analyse corporate financial data and automates portfolio management based on a value investing approach, according to the statement.

A number of asset management firms in Thailand have already offered the firm’s investment strategy to clients, with a total of THB 2.2bn ($70m) worth of assets invested in the strategy, the statement said.

The service is similar to Hong Kong-based Magnum Research, the firm behind Aqumon, which collaborated with China Asset Management in Hong Kong to co-launch the AI China Alpha Strategy last year. The strategy makes use of Magnum Research’s algorithm to invest in individual stocks in the China A- and H-share markets.

Luangsomboon said that annual fees will include a 0.5% management fee and a performance fee of 10% of profits.

“Investors can also diversify their investments across Thailand, Vietnam and the US with ease as everything can be done online, making it simpler for anyone to invest.”

With the recent venture capital funding, Jitta hopes to hire developers to incorporate artificial intelligence into its technology, according to the statement. In addition, the firm also plans to make accessible stock-analysis data of 95% of the world’s stocks from 16 territories.

Part of the Mark Allen Group.