AI fund for institutional investors

The BayernInvest Kapitalverwaltungsgesellschaft mbH and ACATIS Investment GmbH jointly launch the BayernInvest ACATIS KI Aktien Global-Fonds. The global equity fund is the first fund to be launched on the Germany market that is fully managed by artificial intelligence. While BayernInvest has determined the main factors of the investment strategy, the individual title selection and their weighting is determined by ACATIS's deep learning algorithms. The fund is intended to be successful in the long term by automatically adapting to the market environment. Dr Hendrik Leber, the spokesman for the management and founder of ACATIS, sees a very strong market interest for such a product.

From an investment universe of approximately 4,000 global shares, up to 50 are selected to achieve an outperformance of at least three percent per year against the MSCI World Index. Dr Volker van Rüth, the spokesman for BayernInvest's management, says in a press release that the performance test of the fund was very impressive. The goal was exceeded clearly in a walk-ahead test in nine out of eleven years, and drawdowns were recovered faster than the MSCI World Index itself, reads the press release.

The deep learning models for the fund were developed by the Quantenstein GmbH, a joint venture of ACATIS and NNAISENSE. The model was constructed on the basis of millions of observations of fundamental equity data leveraging long-short term memory neurones. As artificial intelligence plays an increasingly important role in every area of life already, van Rüth expects the innovative technology will also occupy a crucial position within the field of asset management.