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Aberdeen Standard launches AI-steered equity fund

The Aberdeen Global Intelligence Equity SICAV will use quantative techniques aided by machine learning to time and weight investments based on ‘factor premia’.

Aberdeen Standard launches AI-steered equity fund

Aberdeen Standard Investments has launched a new global equity fund that will make use of artificial intelligence (AI) to identify investment opportunities.

Launched in Luxembourg, the Aberdeen Global Intelligence Equity SICAV will use quantitative techniques aided by machine learning to time and weight investments based on ‘factor premia’ such as value, quality, momentum, size and volatility determined.

The fund will be available for an annual management fee of 0.5%.

It builds upon the firm’s existing factor investing strategies, including the SMARTER Beta range of multifactor equity funds and the BETTER Beta range of enhanced indexation funds.

Global head of quantitative solutions at ASI David Wickham said he believed this was a ‘unique approach within the mainstream investment community’ as other strategies are generally either thematically-focused or apply machine learning to unstructured data.

‘This is an innovative AI-powered approach to factor timing, that enables us to systematically determine the weightings to each factor within the new global equity fund and also allows us to time the relevant individual metrics used within those factors,’ he said.

‘We can now bias our portfolio towards the factors best suited to today’s market environment and continue to evolve the factor exposures as the market changes through time.’

Co-chief executive at Standard Life Aberdeen Martin Gilbert (pictured) said developments in machine learning have been driving ‘innovation and a resurgence’ in quantative approaches to investment management.

 

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