Aggregate Asset Management lists AI-enabled deep-value equity fund on ADDX

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PRIVATE markets exchange ADDX has listed a deep-value equity fund, managed by Aggregate Asset Management (AAM), on its platform, it said on Thursday (Nov 23).

The fund, which uses machine learning to optimise investment strategy and returns, targets a compound annual growth rate of 8 percent and is open-ended. It is invested in over 1,300 stocks listed in 17 markets, including Singapore, Hong Kong, Japan, the United States, and Germany.

As part of the listing, investors can subscribe to an ADDX-exclusive share class, which has a minimum ticket size of S$10,000. Investors will not be charged any performance fees and management fees are waived till Dec 31, 2025.

In comparison, investors who subscribe directly via AAM typically have to invest a minimum of S$100,000 and be subject to varying management as well as performance fees.

ADDX chief executive Choo Oi-Yee said that the fund strikes a balance between value and growth stocks, which are two different approaches to unlocking the potential for substantial returns in equity investing. Value stocks offer the promise of steady, consistent growth as they recover from their perceived undervaluation, while growth stocks have the potential for explosive growth and market dominance at higher risk and volatility, Choo noted.

Incepted in 2012, the fund’s strategy of acquiring stocks at a discounted price has delivered a compound annual growth rate of 6.1 percent.

Fund managers started to use artificial intelligence (AI) technology to enhance stock-picking methodology in 2021.

AAM founder and executive director Eric Kong noted that since the adoption of AI in managing the fund, it has beaten its benchmark, the MSCI AC Asia Pacific Index, by 35 percent.

But the fund’s analysts are still in charge of performing qualitative checks on every stock the AI picks, Kong added.

“Our AI will always be an enhancement, not a replacement, of our analytical process,” he stressed.

ADDX’s Choo said: “The future of investing is evolving, where data-driven strategies and artificial intelligence have converged to create new possibilities for investors, and ADDX is excited to be a part of this technological revolution in investing.”

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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