Aberdeen Standard Investments has launched the Aberdeen Global Artificial Intelligence Global Equity Sicav, a global equity AI fund that uses machine learning to identify sources of potential return.
The Aberdeen Global (AG) AI Global Equity Sicav, launched in Luxembourg, results from the collaboration between Aberdeen Standard Investments’ Quantitative Investment Strategies team and Mitsubishi UFJ Trust Investment Technology Institute and the Trust Bank in Tokyo – a centre of excellence in robotics, artificial intelligence and financial technology.
The fund uses a variety of quantitative techniques to time its investments – based on “factor premia”, which are sources of risk including value, quality, momentum, small size, and low volatility that can provide investors with persistent risk-adjusted excess returns.
Martin Gilbert, Co-CEO at Standard Life Aberdeen, said: “For active investment management firms, the ability to use machines to read and understand vast amounts of data in order to forecast market moves more accurately has spawned innovation and a resurgence in active quantitative investment approaches. To benefit from this AI-driven innovation, and to complement our highly successful active fundamental strategies, we are proud to have collaborated with the MTEC – Japan’s leading and most prestigious financial technology think-tank – and the Trust Bank to develop this active quant Fund.”
The fund is an extension of the firm’s existing factor investing strategies, including the recently launched proprietary SMARTER Beta multifactor equity indices and funds, and the BETTER Beta range of enhanced indexation funds.