Trinity Securities has launched Smart Wealth, an investment service that constructs investment portfolios and makes trades based on research and analyst recommendations, with a target of attracting up to 500 inactive investors during the first year.
Chief executive and president Charnchai Kongthongluck said the service will invest in up to five stocks and curb investment risk with stop-loss points based on analyst recommendations.
"Investment consultants (ICs) will execute trading transactions for customers when analysts provide research and recommendations," Mr Charnchai said. "The company will send an SMS [text message] to customers to alert them in the morning, and if they do not deny such an SMS [by remaining idle], ICs will execute the transaction."
He said the company is the first brokerage firm to receive approval from the Securities and Exchange Commission to conduct trading transactions on customers' behalf, with the SMS as a medium for trading orders.
"We are confident in our research and analyst recommendations," Mr Charnchai said. "Based on our track record over the past three years, we had a better return than the market."
He said the service will focus on inactive customers, who are expected to represent about 80% of total trading accounts in the system, as the service is equipped with analysts and consultants to help them manage better return.
Fees charged, however, will be higher, including a trading fee of 0.25% of trading value, a 1% annual management fee (charged quarterly at 0.25% of outstanding investment in a portfolio), and a performance fee charged on a step-up basis according to portfolio return.
There will be no performance fee charged if the return is 10% or lower, Mr Charnchai said.
"It would be better if we compete on product quality, not price, to gain market share," he said.
He declined to provide details concerning the company's market share, saying only that Trinity Securities is focused on profitability and the strategy would encourage ICs and analysts to help inactive customers to generate better return, intending to gain clients' long-run loyalty.
The company aims to have 500 customers worth a combined 300-500 million baht under the Smart Wealth service.
