KB Securities Selects Final AI Algorithms Through Stove League Program

KB Securities announced on the 30th that it recently concluded its “Stove League” program, aimed at strengthening the competitiveness of its wrap accounts using artificial intelligence (AI) algorithm models, and has selected the algorithms developed by Quantec and Smilegate Asset Management as the final choices.

The Stove League is KB Securities’ internal evaluation system for selecting outstanding partner firms by comprehensively assessing investment performance, the capabilities of portfolio managers, market insight, and the ability to propose customized strategies. This year’s program was designed to identify high-performing AI-based algorithms and was conducted over approximately three months, starting in July, with a total of 14 algorithms evaluated.

KB Securities selected the final candidates by combining quantitative evaluation (60%) and qualitative evaluation (40%). The selected algorithms will undergo additional processes to enhance stability and profitability before their official launch in January next year. Quantec will be responsible for domestic equity strategies, while Smilegate Asset Management will handle overseas equity strategies.

The AI algorithms analyze market data to detect volatility signals early and adjust asset allocation ratios accordingly. This approach minimizes emotional decision-making by portfolio managers, enhances the stability of returns and consistency of management, and introduces a new asset management paradigm for investors.

Quantec utilizes AI algorithms based on financial data from KOSPI and KOSDAQ-listed companies to identify groups of stocks capable of generating alpha (excess returns). The company aims to achieve returns above the benchmark while maintaining a balanced portfolio that emphasizes financial momentum characteristics. Smilegate Asset Management employs its proprietary “leading stock detection algorithm” to invest in stocks that benefit from each stage of the AI revolution, compressing its focus on leading stocks when market momentum occurs to pursue high long-term returns.

Kim Minsu, Head of Client Asset Management at KB Securities, stated, “The Stove League was more than just an investment performance evaluation; it was a real-world stage for verifying AI algorithms capable of delivering excess returns. Through collaboration with outstanding AI developers, we will continue to expand wrap accounts that clients can trust and further strengthen KB Securities’ unique competitive edge.”

This content was produced with the assistance of AI translation services.