The Stock Exchange of Thailand (SET) is set to roll out a mutual fund service platform early next year in a move that could shake up the industry's landscape.
The system will sharpen the competitiveness of small mutual fund companies against large firms, particularly bank subsidiaries, senior executive vice-president Pakorn Peetathawatchai said.
Half the industry's assets under management (AUM) are managed by the two largest players, SCB Asset Management and Kasikorn Asset Management. All five largest players have banks as their parents, with their market share more than 80%.
Mutual fund companies that are subsidiaries of banks have the advantage of their parents' branch network, customer base and back-office operations.
According to the Association of Investment Management Companies, 17 mutual fund companies managed AUM worth 4.06 trillion baht at the end of last year, representing around one-third of bank deposits.
The SET's new platform will offer a full array of back-office services. It will offer a clearing service for participating mutual fund companies and allow investors to check information at one point.
The SET yesterday signed agreements with 30 companies to participate in the platform. They include Krungsri Asset Management, TMB Asset Management, BBL Asset Management, Tisco Securities, Bualuang Securities, AIA, Morningstar Thailand, TMB Bank, Krungthai Bank and the Government Savings Bank.