Smart Wealth Asset Management AG, a Swiss asset manager specialising in AI-driven investment products, has launched its Irish Collective Asset-management Vehicle (ICAV) umbrella structure with two sub funds: the SW Multi Asset AI Flagship Fund and the SW Global Equity Plus AI Fund.
The ICAV has been launched with an expected US$100 million from LP investors from Europe, the Middle East, Asia, and Australia. The structure aims to secure US$2bn in assets over the next three years, the company said.
Seed share class investors already include some of the most prominent and renowned family offices globally.
Both funds are driven by Smart Wealth’s proprietary AI-based forecasting and optimisation technology, spearheaded by founder and CEO, Dr Miro Mitev, who has been pioneering the application of AI-based optimisation and forecasting techniques in asset management since 2000.
The technology has been utilised as a SaaS by some of the world’s largest financial institutions, the company said.
The SW Multi Asset AI Flagship Fund invests in equities, bonds, and commodities. Smart Wealth has been using the same forecasts and eligible instruments underlying the SW Multi Asset AI Flagship Fund for almost five years with its Multi Asset Global Rotation AMC product.
Global investment solutions provider Russell Investments will serve as the investment manager for Smart Wealth’s new ICAV structure.
Dr. Miró Mitev, founder and CEO of Smart Wealth, said: “AI is a term that is used liberally, but our model seeks to remove human bias completely. Our results validate our approach, with our investment products delivering better risk-adjusted returns on core assets. In essence, our AI determines smart beta strategies for highly liquid, blue-chip assets that offer higher returns for any given level of risk.
“Our AI-based portfolios have outperformed the composite index by an impressive 8.4% annually over the last 20 years. As well as delivering strong returns in favourable markets, our AI model is designed to protect investor capital during bear markets by removing human emotional biases from investment decisions.
Jim Leggate, Head of EMEA at Russell Investments, commented: “We’re excited to support Smart Wealth as their dedicated implementation partner in expanding access to their AI-driven investment strategies. Leveraging our deep implementation expertise and strong track record of working with leading asset managers globally, we aim to help Smart Wealth bring these innovative strategies to market efficiently and at scale.”
