HSBC Rolls Out First Multi-Asset Index Powered by AI and Big Data

HSBC​ announced the introduction 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.

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.

David Odenath, Head of Quantitative Investment Solutions, Americas at HSBC Global Banking and Markets said: “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. 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.”