HSBC introduces first multi-asset index powered by AI and Big Data
April 21, 2021
HSBC today announced the launch of the AI Powered Multi Asset Index (AiMAX) family, the first rules-based multi-asset investment strategy to use artificial intelligence (AI) as a method for constructing a diversified growth portfolio.
The introduction of AiMAX follows HSBC’s launch of AiPEX, the world’s first AI-powered stock index family using IBM WatsonTM. Since going live on August 9, 2019, the AiPEX Total Return Index (AIPEXTR) has outperformed the S&P 500 Total Return Index by 4.79 percentage points.
AiMAX was developed in collaboration with EquBot, the first asset manager to develop an AI-based ETF, and utilizes IBM Watson Discovery to retrieve and analyze millions of data points, from both traditional sources such as financial statements and non-traditional sources such as social media posts.
By building intuition and experience from historical information, and continuously learning as new information becomes available, AiMAX constructs a diversified portfolio of assets whose prices are poised for growth. AiMAX invests across 15 asset classes, spanning five investable asset types (Developed Equities, Developed Bonds, Emerging Markets, Real Assets, and Inflation Assets) and a cash index.
"This is a new approach to multi-asset investing that combines cutting edge AI techniques and a time-tested diversification strategy to balance risk and return,” said David Odenath, Head of Quantitative Investment Solutions, Americas at HSBC Global Banking and Markets. “By using AI and big data to improve the accuracy of our capital markets assumptions, we are able to deliver a next generation asset allocation strategy to our clients."
Based on simulated and historical returns as of February 26, 2021, AiMAX would have performed above the S&P 500 Price Return Index with significantly less volatility and more diversification during the prior fifteen years.*
HSBC is the exclusive licensor of AiMAX and AiPEX, and is offering a variety of investment solutions based on the indices to its clients globally. Athene USA, a leading provider of retirement savings products, now offers AiMAX and AiPEX in its suite of fixed indexed annuities.
"As we help individuals fund their retirement needs, it’s crucial that we create solutions that help them meet their future financial goals," said Grant Kvalheim, CEO and President of Athene USA. "HSBC has been a great partner in developing customized equity indexes for our annuities, which Athene clients can rely on to provide retirement solutions that are an important part of a total financial plan."
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,918bn at 31 March 2020, HSBC is one of the world’s largest banking and financial services organizations.
About AI Powered US Equity Indices; Use of Simulated Returns
Alternative modelling techniques or assumptions may produce different hypothetical information that might prove to be more appropriate and that might differ significantly from the hypothetical information set forth above. Additional information, including further detail about hypothetical back-tested information under Use of Simulated Returns, is available at http://aimax.gbm.hsbc.com and http://aipex.gbm.hsbc.com
About Athene USA
Athene USA is a subsidiary of Athene Holding Ltd, a leading financial services company, which specializes in helping its customers achieve financial security and serving as a solutions provider to institutions. Athene USA is headquartered in West Des Moines, Iowa and is the principal operating location for Athene's business in the United States. Athene USA serves hundreds of thousands of customers across all 50 states, and through its predecessor companies, has been serving American consumers for more than 100 years. Further information about Athene can be found at athene.com
EquBot offers compelling global financial technology solutions powered by artificial intelligence (AI) and machine learning (ML). The EquBot investment technology platform works around the clock to process market big data and unstructured electronic signals to formulate innovative and actionable investment insights. The use of multiple instances of AI at the core of EquBot's proprietary algorithms position the firm as an industry leader in data consumption while simultaneously growing its global knowledge and investment value base. EquBot’s unique technology structure allows for efficient construction of custom investment solutions. EquBot seeks to use its investment technology platform to take leadership in bringing affordable AI investment products to market for investors of all backgrounds. EquBot is a participant in the “With Watson” program and a graduate of the IBM Global Entrepreneur Program. EquBot is headquartered in San Francisco. Additional information is available at www.equbot.com
About IBM Watson
Watson is IBM's AI technology for business, helping organizations to better predict and shape future outcomes, automate complex processes, and optimize employees' time. Watson has evolved from an IBM Research project, to experimentation, to a scaled, open set of products that can run anywhere. With more than 40,000 client engagements, Watson is being applied by leading global brands across a variety of industries to transform how people work. To learn more, visit: https://www.ibm.com/watson
* Hypothetical back-tested results are neither an indicator nor a guarantee of future returns. See “About AI Powered US Equity Indices; Use of Simulated Returns”.