Kenanga launches Malaysia's first AI-leveraged investment fund

PETALING JAYA: Kenanga Investors Bhd has launched a Artificial Intelligence (AI) fund, Kenanga Global Multi Asset Fund, which is the first-of-its-kind in Malaysia.
The fund leverages on the breakthroughs in AI to identify profit opportunities from short-term predictive relationships in pricing and volume data. It then constructs portfolios with a focus on capital preservation based on forecasts of instruments’ movements.
It said in a statement that the fund aims to deliver absolute returns in any market condition by diversifying into global index futures with a long/short strategy.
“An example of this is the target fund’s (TCM Global Index Fund (Cayman) Ltd) performance in 2016, it was able to profit from the various opportunities in asset mispricing to deliver a return of 23.2% compared to the S&P 500 benchmark of 12.0%,” said Kenanga Investors executive director and CEO Ismitz Matthew De Alwis.
Kenanga Global Multi Asset Fund feeds into the TCM Global Index Fund, which is managed by Taaffeite Capital Management, LLC.
The TCM Global Index Fund is an absolute return fund measured against a benchmark of 15% per annum over two to three years which profits from the daily movement of global equity and fixed income indices. Its underlying assets are a long/short basket of 25 liquid global indices rebalanced once a day based on probabilistic forecasts of how indices will move over the next 24 hours.