This fully automated service is designed to eliminate human emotions from decision making, adapt quickly to changing markets and improve the consistency of investment goals.
The investment engine, which will be launched next month, uses multiple machine learning techniques to learn from large sets of data, deduce evolving relationships and predict expected price with a high degree of accuracy, according to Sanlam Global Investment Solutions (SGIS).
“The investment engine also contains an AI risk manager which attributes weights intelligently across asset classes. Its goal is to achieve a certain minimum level of return while minimising expected portfolio capital loss,” the company said in a statement.
SGIS said it believes that investment strategies which worked in the past may not work going forward due to the significant changes in recent years in the financial markets where bond yields are at all-time lows and equities at all-time highs.
“To this end, SGIS has appointed London-based fintech firm AI Machines to manage a number of investment mandates utilising their advanced Artificial Intelligence & Machine Learning investment engine,” it said.
Cobus Kruger, chief executive of SGIS, said: “The majority of industries are embracing artificial intelligence and machine learning to ensure their clients’ experience is the best it can be. However, the mainstream asset management industry is way behind the curve in implementing AI. Now is the time to challenge the status quo of investing.”
David Itzkovits, head of investments for SGIS, added: “The AI investment engine derives its returns in a different way to other investments and should be viewed within a client’s overall investment strategy and as a diversifier of manager risk.”
SGIS is wholly owned by the Sanlam Group, and focuses on providing innovative investment solutions, and global distribution for the international asset management capabilities of the Sanlam Group.
AI Machines has a seven-year track record of operating advanced artificial intelligence and machine learning based investment strategies. It is authorised and regulated by the Financial Conduct Authority in the UK.
