By Nam Hyun-woo
Artificial intelligence (AI) is starting to show its presence in the financial industry, with Mirae Asset Global Investments' AI Smart Beta Fund gaining attention among investors for its profitability.
According to Zeroin, a fund analyzing firm, the six-month-old fund posted a 17.12 percent yield from Jan. 9 to June 23, well above the benchmark KOSPI's 15.68 percent during the same period. In comparisons with one-month and three-month periods, the AI-powered fund showed higher yields than the KOSPI.
The asset management company said the fund's sound performance is proving that an AI-backed fund can be successful.
The fund is based on deep learning technology. The AI will learn various indices and other information which affect the investment market through its artificial neural network. It will then organize a portfolio based on this knowledge and compare it with an optimal portfolio, which reflects the result of investment.
By repeating the process, the AI will narrow the gap between two portfolios by reflecting market developments. The company said the more data the AI has, the better investment decision it will make.
The fund focuses on Smart Beta exchange-traded fund (ETF), which uses alternative index construction rules, instead of the typical market cap-centric index strategy.
The company said Smart Beta ETF has the strengths of both active and passive management strategies. Active management seeks to outperform an investment benchmark index, the KOSPI. Passive management seeks market level profit by following the benchmark index. The latter costs less and is more transparent.
Mirae Asset Global Investments has been emphasizing AI in investments. In October, the firm established an AI finance research center to apply deep learning technology to its businesses.
"Investments through AI is the trend and it will be one of two pillars in investment along with human-powered asset management," said Sung Tae-kyung, retail marketing department head at Mirae Asset Global Investments.
"Along with the AI Smart Beta Fund, the company will fully take advantage of investment systems based on AI so that it can provide various products for investors."
Artificial intelligence (AI) is starting to show its presence in the financial industry, with Mirae Asset Global Investments' AI Smart Beta Fund gaining attention among investors for its profitability.
According to Zeroin, a fund analyzing firm, the six-month-old fund posted a 17.12 percent yield from Jan. 9 to June 23, well above the benchmark KOSPI's 15.68 percent during the same period. In comparisons with one-month and three-month periods, the AI-powered fund showed higher yields than the KOSPI.
The asset management company said the fund's sound performance is proving that an AI-backed fund can be successful.
The fund is based on deep learning technology. The AI will learn various indices and other information which affect the investment market through its artificial neural network. It will then organize a portfolio based on this knowledge and compare it with an optimal portfolio, which reflects the result of investment.
By repeating the process, the AI will narrow the gap between two portfolios by reflecting market developments. The company said the more data the AI has, the better investment decision it will make.
The fund focuses on Smart Beta exchange-traded fund (ETF), which uses alternative index construction rules, instead of the typical market cap-centric index strategy.
The company said Smart Beta ETF has the strengths of both active and passive management strategies. Active management seeks to outperform an investment benchmark index, the KOSPI. Passive management seeks market level profit by following the benchmark index. The latter costs less and is more transparent.
Mirae Asset Global Investments has been emphasizing AI in investments. In October, the firm established an AI finance research center to apply deep learning technology to its businesses.
"Investments through AI is the trend and it will be one of two pillars in investment along with human-powered asset management," said Sung Tae-kyung, retail marketing department head at Mirae Asset Global Investments.
"Along with the AI Smart Beta Fund, the company will fully take advantage of investment systems based on AI so that it can provide various products for investors."
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