PETALING JAYA: Kenanga Investment Bank has unveiled its Kenanga Digital Investing (KDI) platform, an artificial intelligence-driven (AI) robo-adviser for Malaysians to save and invest.
It said the platform comprises two products, KDI Save – which offers daily returns on savings with no lock-in period and zero management fees – and KDI Invest, which enables customers to access global investment opportunities via US-listed exchange traded funds (ETF) at a competitive rate.
The investment bank’s group chief digital officer (CDO), Ian Lloyd (pix), said the platform is another step towards its goal of making investing accessible to all.
“We are proud to launch KDI Save, a cash management product with one of the highest returns in the market, while KDI Invest provides a gateway to the global markets at an affordable fee,” he said at the virtual launch of the platform yesterday.
In differentiating itself from the other digital investment management provider, Lloyd said the key piece to this puzzle is simplicity as well as utilising the expertise of Kenanga, as it is the first local investment bank to offer such a product.
He said the system selects suitable portfolios to help customers achieve their investment goals in line with each customer’s personal risk preferences.
In addition, the AI monitors global market conditions and rebalances customers’ portfolios automatically, giving them peace of mind that their portfolio is being taken care of around the clock
Elaborating on the process, the CDO revealed its robo-adviser looks at 50-100 different types of ETF at any given day and picks 30-35 ETF and the things that are looked for are very liquid ETF that are low cost as well as diverse in terms of geography and asset classes.
“We’re talking about a range of different product classes and it does a lot of analysis on the fundamentals, looks at how it is doing vis-a-vis other markets and design an optimal portfolio around that,” Lloyd said.
“Furthermore, it looks at the entire market condition and it also detects if there is something happening in the market, there is extreme volatility or other things that are happening and will take a defensive play.”
The investment bank highlighted that KDI Invest is free for investments below RM3,000 while investments above that amount will be charged a management fee between 0.3% and 0.7% a year, making it one of the most competitive robo-adviser platforms in the market today.
Meanwhile, KDI Save is offering a market-leading fixed interest rate of 3% until the end of this year.