The core principal of the fund is to track the MSCI World Index with the key proviso that each and every week a determination is made as to the amount the fund allocates to tracking the index (this will be between 10 - 90% of the funds assets)
The determination is made by AI (Artificial Intelligence) & ML (Machine Learning) alogrithms and its Predictive Investment Engine (PIE)
PIE consists of hundreds of Ai machines acting as data processors, analysers, predictors and an asset allocator / risk manager.
PIE translates all data into thousands of 'data series' and performs millions of calculations at each decision point with the primary objective of minimising capital loss and minimising the amount of time spent in cycle downturns. The effect of this process combines to smooth the investment journey and maximise performance over a market cycle.
Offers weekly dynamic 'risk-on' & 'risk-off' calls
100% driven by AI & Machine Learning
Operates without emotion or behavourial bias
10 - 90% weekly participation in world equity tracker
Not at risk of bond or bear markets
Outstanding track record since 2007
Daily dealing & UCITS regulated
Sanlam Group dates back 100 years
Ai refers to the theory and development of computer systems that complete tasks which usually require human intelligence and capability, such as recognising speech and making decisions.
Modern-day machines are capable of learning by themselves and can improve their own methods by recognising patterns in data and re-writing their own new algorithms.
Every week, the Ai engine performs deep analysis and runs a vast amount of calculations to evaluate the state of capital markets. Based on those calculations and predictions,it adjusts its asset allocation and portfolio instrument selection.
While that series of calculations would seem complicated if you tried to follow all the 0’s and 1’s involved, the Ai engine’s output is incredibly simple.
For example, in the Sanlam Ai Global Managed Risk (GMR) UCITS fund, if the Ai engine spits out a reading that’s as bullish as possible, the fund will go 90% long on stocks in the coming week; if it’s at its maximum bearish level, the fund will be long just 10%, keeping the rest of your money on the side-line.
The engine will repeat that exercise automatically every seven days, always taking an effective long position between 10% to 90% and everything in between.
The investment manager utilizes Artificial Intelligence to drive the Fund’s risk management strategy; dynamically altering the net exposure to the market with short futures contracts which change in value inversely to equity market movements.
Therefore, when equity markets fall, the futures increase in value offsetting varying degrees of the losses. In rising equity markets, full participation in the growth of the markets may be forsaken to some extent for the benefit of minimizing losses during negative markets.
90% Passive equity exposure to low cost tracker (MSCI World)
0 - 80% Short Futures- dynamic buy/sell for market protection (Weekly rebalance)
How can investment solutions powered by Ai compete against human investment solutions?
Ai never feels emotion and does not suffer behavioural biases. While the GMR Fund’s Ai engine, for example, rationally and apathetically observes the market every week before setting its allocation, human managers are highly vulnerable to emotions and biases such as fear, greed or herd mentality, particularly in extremely bearish or bullish market environments.
The Ai engine’s autonomous recalibration approach allows independence from human involvement. It therefore eliminates key person risk that comes with traditional fund management where performance and future of the fund is highly dependent on the fund manager.
Ai powered systems thrive when used for repetitive tasks that require precise results. The Ai investment engine stays on top of the market by recalibrating every single week (that’s 52 times per year), in a way that even the most active human manager would never do.
Typical asset allocation decisions by managers are done quarterly.
The most basic goal of investing is to minimise your risk of loss while maximising your growth over a market cycle.
Just as Ai revolutionised so many other industries, it’s now doing the same for investment management.
Ai is an omnipresent concept. Whether we are aware or not, Ai is an integral part of our daily routines:
[[• Social media platforms use Ai to do everything from analysing text to map the home population density of their users, to recognising and delivering content and ads to meet user interests.
• Amazon and Netflix use Ai to improve customer experience. Amazon enables users to receive a custom-tailored shopping experience based on the products they buy and browse for. Netflix curates other programming to suit your interests.
• Ai has also become a go-to technology for Transportation purposes. Airplanes have long used automation to help pilots fly planes, from primitive autopilot technology nearly a century ago to Ai-assisted flights today. A 2015 New York Times report found that the average flight of a Boeing plane involves only seven minutes of human-steered flight.
Just as we trust our lives to Ai when we fly, we are also entering the era of self-driving cars, one that will trust our lives to yet another form of Ai-powered transportation.
And if you still have lingering questions about trusting your investments to Ai instead of a human manager, ask yourself this: If you’re willing to board a plane and put your life in the hands of a machine, why not trust Ai to help you make better decisions with some of your money?]]
By far the most efficient and easiest way for expatriates to access the Sanlam AI Global Managed Risks Fund is to do so via a Personal Portfolio Bond.
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