HSBC Amanah Malaysia has launched the new AI-powered US Equity 5 Index (AiPEX5) suite of structured products, marking the bank’s first use of artificial intelligence as a method in equity investing.

AiPEX5 is aimed at generating positive long-term returns and building wealth for investors by using the latest techniques in artificial intelligence. According to HSBC Amanah, 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 scores of data each day, turning the data to investment insight.

AiPEX5 then selects stocks by applying the AI-driven insight to improve on fundamental equity portfolio management techniques. To reduce exposure to equities when markets are unstable, it incorporates a daily volatility control mechanism.

The bank highlighted the new index’s ability to identify companies with stock prices that are poised for growth while managing draw-down risk during times of high market volatility, saying that this is especially relevant to investors in current times.

As pointed out by Alvin Kong, head of global markets at HSBC Malaysia, investors need strategies that focus on providing steady returns at a reduced risk, especially in today’s pandemic-impacted, highly volatile markets. “However, successful investment strategies must keep up with the growing amount of data being generated each day,” said Kong.

“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,” Kong added.

(Source: The Sun Daily)

• TAGS:
• AI
• AI-Driven Investment
• AiPEX5
• Artificial Intelligence
• HSBC Amanah
• US Equity 5 Index