Big Data

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

Developed with EquBot, AiMAX uses IBM Watson to help turn data into investment insight

HSBC today announced the launch 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.

The introduction of AiMAX follows HSBC’s launch of AiPEX, the world’s first AI-powered stock index family using IBM WatsonTM. Since going live on August 9, 2019, the AiPEX Total Return Index (AIPEXTR) has outperformed the S&P 500 Total Return Index by 4.79 percentage points.

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.

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

Based on simulated and historical returns as of February 26, 2021, AiMAX would have performed above the S&P 500 Price Return Index with significantly less volatility and more diversification during the prior fifteen years.*

* Hypothetical back-tested results are neither an indicator nor a guarantee of future returns. See “About AI Powered US Equity Indices; Use of Simulated Returns” below.

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

“As we help individuals fund their retirement needs, it’s crucial that we create solutions that help them meet their future financial goals,” said Grant Kvalheim, CEO and President of Athene USA. “HSBC has been a great partner in developing customized equity indexes for our annuities, which Athene clients can rely on to provide retirement solutions that are an important part of a total financial plan.”

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