Sanlam Global Investment Solutions has joined the recent raft of AI-led initiatives in asset management by handing its Managed Risk multi-asset fund to an AI engine.
The South African group said this marks the first balanced Ucits fund to be 100% managed by an artificial intelligence (AI) and machine learning (ML) engine.
Sanlam said it had made the move on the Ireland-domiciled fund to allow for quicker responses to significant market changes and unprecedented central bank participation.
Commenting on the change, David Itzkovits, head of investments for SGIS, said: ‘The goal at SGIS was to find a solution that can adapt as quickly as the markets change. Our AI capability does this by applying the latest in ML techniques which have multiple years of live operational experience and a real, impressive track record.’
Itzkovits added it is no longer a case of ‘man versus machine’ in investment but would be ‘man with machine versus man without’.
SGIS said the process could enhance a manager’s current investment process but it was using it for total automation and optimal portfolio allocation based on a pre-defined investment strategy.
Other major developments in this area saw German group ACATIS Investments hand a global value fund over to be 100% AI-led as part of its ‘Quantenstein’ project.
ACATIS founder Dr. Hendrik Leber told Citywire Selector last month that many ‘mediocre’ AM jobs would eventually become obsolete as computer traders gained market share.
On a three-year total return basis, the Sanlam Managed Risk fund returned 2.34% in US dollar terms to the end of May 2017. Its Citywire-assigned benchmark, the MSCI World TR USD, rose 20.2% over the same period.