PETALING JAYA: HSBC Amanah Malaysia Bhd has launched the AI Powered US Equity 5 Index (AiPEX5) suite of structured products in Malaysia, the bank’s first to use artificial intelligence (AI) as a method in equity investing.
The new index is especially relevant to investors in the country through this period of financial market unpredictability as it is able to identify companies whose stock prices are poised for growth while managing draw-down risk during times of high market volatility.
AiPEX5 aims to generate positive long-term returns and build wealth for investors by using the latest techniques in AI. By processing data thousands of times faster than humans and working around the clock, AiPEX5 attempts to gain an informational advantage over the rest of the market and continues to learn and adapt as markets evolve and new information becomes available.
The AI Powered US Equity Indexes are the first and only rules-based equity strategies to use IBM Watson to continuously analyse and learn from millions of pieces of structured and unstructured data each day, and turn the data into investment insight.
AiPEX5 selects stocks by applying AI-driven insight to improve on fundamental equity portfolio management techniques. AiPEX5 incorporates a daily volatility control mechanism to reduce exposure to equities when markets are unstable.
HSBC Malaysia head of global markets Alvin Kong said in today’s highly volatile markets compounded by the impact of the Covid-19 pandemic, investors need strategies that focus on providing steady returns at a reduced risk.
“However, successful investment strategies must keep up with the growing amount of data being generated each day. AiPEX5 simulates a team of thousands of analysts and traders working around the clock to learn from millions of pieces of information and identify potential investment opportunities. This not only empowers clients to keep up with their investments, but thrive in an increasingly complex world of change,” said Kong.
