Global investment strategy regularly rebalances portfolio with the aim of providing capital appreciation, inflation protection and stable fixed income returns
HSBC announced the launch of the HSBC AI Global Tactical Index (HSBC AIGT), which will use machine learning powered by Amazon Web Services, Inc. in conjunction with equity investing. The HSBC AIGT index was developed by HSBC and leverages the artificial intelligence (AI) capabilities of AWS to carry out an AI-based index investment process.
“HSBC AIGT puts the power of an adaptive AI system fuelled by data into a global tactical allocation framework, creating a systematic investment strategy that is designed to keep up with and thrive in increasingly complex markets.”
HSBC AIGT uses AWS AI services to analyze and learn from data thousands of times faster than humans, enabling the index to automatically adapt its approach as market dynamics change and new information becomes available.
Ibexis Life & Annuity Insurance Company (Ibexis), a provider of retirement savings products, is the exclusive provider of HSBC AIGT in its suite of fixed indexed annuities. Applying what has been learned, HSBC AIGT employs a rules-based investment strategy that uses advanced techniques in AI and machine learning to opportunistically invest across a global portfolio of assets. HSBC AIGT rebalances its portfolio weekly, and, to manage short-term volatility, reallocates among the chosen portfolio and cash on a daily basis. HSBC AIGT dynamically shifts in and out of global equities, gold and bonds in an attempt to provide a combination of equity capital appreciation, inflation protection, and stable fixed income returns.
“Successful investment strategies of the future require the ability to analyze and learn from the growing amount of data, and react quickly to changing market conditions,” said Dave Odenath, Global Head of Quantitative Investment Solutions at HSBC Global Banking and Markets. “HSBC AIGT puts the power of an adaptive AI system fuelled by data into a global tactical allocation framework, creating a systematic investment strategy that is designed to keep up with and thrive in increasingly complex markets.”
“Using AWS artificial intelligence and machine learning capabilities for the HSBC AI Global Tactical Index, HSBC is meeting the industry’s evolving needs as it continues to develop innovative solutions for the investment community,” said Scott Mullins, Managing Director, Worldwide Financial Services Business Development at AWS. “We are excited to collaborate with HSBC across their machine learning initiatives powered by AWS.”
Nate Gemmiti, CEO & President of Ibexis, said, “Ibexis is excited to launch its fixed indexed annuity with a crediting strategy linked to the HSBC AIGT. We seek to offer very attractive annuity products for individuals that desire financial security during retirement. We believe offering individuals access to the HSBC AIGT strategy helps fulfil this goal.”
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