Robotics IPOs luring high-risk investors
Investment in robotics technology is increasingly whetting Thai investors’ appetite, with two asset management firms raising funds worth nearly 3 billion baht combined from their IPOs.
Asset Plus Fund Management Co Ltd recently launched a new open-ended fund called ASPROBOT. The IPO, which opened for investors’ subscription between Aug 21 and Sept 1, raised 1.2 billion baht worth of capital, surpassing the 1-billion-baht target.
ASP-ROBOT is the first Thai mutual fund investing in global robotics technology and artificial intelligence (AI), especially in stocks related to robotics and AI manufacturers, along with companies utilising these two innovations to operate their businesses. The targeted robotic sectors for investment are transport, healthcare, semiconductors, software and other roboticsrelated technology.
The fund is primarily focused on investing in AXA World Funds Framlington Robotech, managed by AXA Investment Managers, a multinational asset management company. ASP-ROBOT is an equity fund with a risk level of 6, considered a high-risk investment and fully hedged against foreign exchange fluctuation.
“ASP-ROBOT is the first Thai mutual fund to focus on investing in robotic and AI industries, which have the potential to grow dramatically,” said Ratch Sodsatit, managing director of Asia Plus Fund Management. “Due to relentless innovations and technologies as well as the global demography entering into an ageing society, this [robotics] industry is expected to continue growing 10-15% annually right through 2025.
“This is a good opportunity for investors to participate in this industry at a relatively early stage in order to collect significant returns from this up-and-coming trend.”
Robotics will continue to have a significant impact on society in the coming years, as there is an increasing number of newly listed smalland mid-cap companies, which will eventually provide investment opportunities over time, said Tom Riley, a fund manager of AXA Framlington Global Technology Fund, a feeder fund for AXA World Funds Framlington Robotech.
SCB Asset Management (SCBAM) has launched its second robotic investment fund, called SCB Global Robotics Fund (SCBROBO), targeting investment in three global exchangetraded funds that have policies to invest in robotics technology and AI.
SCBROBO closed its IPO share offering on Monday, with total assets under management of 1.7 billion baht.
SCBAM managing director and chief investment officer Narongsak Plodmeechai said shrewd investors have recognised that robotics technologies are the upcoming investment trend and that robots will be used increasingly to perform tasks.
The robotics revolution is currently in the early stages of development and the market is expected to grow by 10-15% per year, Mr Narongsak said.
From boosting productivity in conventional fields to revolutionising everything from medicine and agriculture to household chores and transport, robots are penetrating into all areas of modern life.
“We live in an era of self-driving cars, robotic vacuum cleaners and more autonomous military drones; that is because innovation comes relatively quick and cheap,” Mr Narongsak said. “The launch of [our latest] robotics fund is an investment choice for investors with a high-risk appetite who expect high returns.”