HSBC launches AI equity index products with EquBot, IBM

Source: IBS Intelligence 2020-05-29

HSBC has announced the first use of artificial intelligence (AI) in equity investing, launching AiPEX, a US Equity Index based on technology from EquBot and IBM Watson.

The family of indices uses AI to digest and learn from publicly available and continuously generated data points, including company announcements, tweets or satellite images – or even the tone of language a CEO uses during an earnings presentation.

By using a rules-based process to evaluate the 1,000 largest publicly traded companies, AiPEX’s AI selects firms where the stock prices are likely to grow, but through an objective selection process similar to a fundamental equity research approach, only thousands of times faster and broader in scope.

“In today’s markets, investors need strategies that can keep up with the growing amount of data being generated each day,” Dave Odenath, Head of Quantitative Investment Solutions, Americas at HSBC Global Banking and Markets, said.

“We are now able to offer clients solutions that not only keep up, but thrive in an increasingly complex world of data. AiPEX with Watson 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.”

EquBot, who developed the solution using its own and IBM Watson’s AI capabilities to turn Big Data into investment insight, and HSBC is the exclusive licenser.

Moreover, AiPEX rebalances its portfolio on a monthly basis and manages short-term volatility by reallocating among chosen equity and cash daily.

HSBC is the exclusive licensor of 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 AiPEX in its suite of fixed indexed annuities.

Also commenting, Grant Kvalheim, CEO and President of Athene USA, which offers the solution in its suite of fixed indexed annuities, said: “The AiPEX index is the first of its kind to bring artificial intelligence technology to crediting strategies within fixed indexed annuities, offering 100 per cent equity exposure.”

“By partnering with HSBC to bring this groundbreaking index to our product platform, Athene builds on its reputation as a leading provider of unique, value-driven retirement solutions for the retail market.”

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HSBC launches AI equity index products with EquBot, IBM

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