Aberdeen Standard Investments has launched a new fund that uses machine learning to identify sources of potential returns. It embeds machine learning techniques within the investment process and will use a variety of quantitative techniques to time its investments. These investments will be based on factor premia, those sources of risk such as value, quality, momentum, small size and low volatility that can provide investors with persistent risk-adjusted excess returns.
The Global Artificial Intelligence Global Equity SICAV, launched in Luxembourg, is the product of a collaboration between Aberdeen Standard Investments’ Quantitative Investment Strategies (QIS) team and Mitsubishi UFJ Trust Investment Technology Institute (MTEC)/Mitsubishi UFJ Trust and Banking Corporation in Tokyo, Japan – a centre of excellence in robotics, artificial intelligence and financial technology. Its the first time the 30-year old MTEC has collaborated with a European entity.