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KB Asset launches AI-powered fund to invest in global ETFs

Seoul-based KB Asset Management said Monday it has launched an open-ended fund that invests in exchange-traded funds at home and abroad, powered by its own artificial neural network for automated portfolio allocation.

The new ETF managed portfolio fund, dubbed KB All Asset AI Solution Fund, will target various ETFs -- or a basket of securities -- that each track asset classes such as stocks, bonds, loans, real estate investment trusts and commodities.

Its portfolio will be automatically rebalanced through its own deep learning engine called “Anderson” to reflect changes in financial market circumstances, based on what it learned from the large amount of global financial data, KB Asset said.

The deep-learning technology will allow the fund’s investors “to secure returns on investment and and manage investment risks simultaneously,” Hong Yung-gi, multi solution division director at KB Asset, said in a statement.

According to KB Asset, the new fund’s investment portfolio already includes SPDR S&P 500 ETF, iShares Short Treasury Bond ETF, iShares EM Bond ETF and Vanguard US REIT.

The fund began selling to retail investors via sister commercial lender KB Kookmin Bank, starting Monday.

KB Kookmin Bank has offered its customers a robo adviser service KbotSAM powered by KB Asset’s Anderson since January 2018.

KB Asset was overseeing 86.7 trillion won ($70.6 billion) assets as of Thursday, the fourth-largest by assets under management in South Korea. It is a wholly owned asset management arm of KB Financial Group.

By Son Ji-hyoung (