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August 22, 2018

Aberdeen Standard Investments rolls out new AI-powered equity fund

Aberdeen Standard Investments has unveiled a new global equity fund that will leverage artificial intelligence (AI) to track sources of returns.

Dubbed Aberdeen Global (AG) Artificial Intelligence Global Equity SICAV, the new vehicle will utilise machine learning and quantitative techniques to time investments.

It will evaluate a host of factors including value, quality, momentum, small size and low volatility.

The fund has been introduced by the firm’s Quantitative Investment Strategies (QIS) team in partnership with Mitsubishi UFJ Trust Investment Technology Institute (MTEC) and Mitsubishi UFJ Trust and Banking.

Standard Life Aberdeen co-CEO Martin Gilbert 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 vehicle has currently been registered for sale in Luxembourg, Switzerland and the UK.

It will be available to institutional investors and retail investors at annual management charge of 0.50% and 1%, respectively.

MTEC president Junichi Narikawa said: “This is the first time in MTEC’s 30-year history where we have collaborated with an entity in Europe and are pleased to work with a world-class investment firm of the calibre of Aberdeen Standard Investments.

“We have worked with their Quantitative Investment Strategies team in London and Edinburgh over a two-year period, and developed a number of innovative AI-models to identify and capitalise upon patterns in global equity markets in order to dynamically time factor premia to generate alpha.”

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