Singapore’s Blockchain-Powered ADDX Exchange Lists AI-Enabled Equities Funds

Last updated: November 23, 2023 23:47 EST
. 1 min read

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Singapore’s blockchain-powered private markets exchange, ADDX, has listed a deep-value equity fund managed by Aggregate Asset Management (AAM) to its platform.

This fund, which uses machine learning to optimize investment strategy and returns, aims for a compound annual growth rate of 8%, and it remains open-ended.

Aggregate Asset Management is chaired by veteran diplomat and geopolitical analyst Kishore Mahbubani, who formerly served as Singapore’s Permanent Representative to the United Nations and President of the United Nations Security Council.

Diverse Equity Fund Invests in 1300 Stocks

This offering by AAM is invested across a diverse portfolio of over 1,300 stocks listed in 17 markets, including prominent ones like Singapore, Hong Kong, Japan, the United States, and Germany.

As part of its listing on ADDX, investors have the opportunity to subscribe to an ADDX-exclusive share class with a minimum ticket size of S$10,000. Investors will enjoy the benefit of no performance fees, and management fees are waived until December 31, 2025.

Comparatively, investors subscribing directly through AAM typically encounter a higher barrier, requiring a minimum investment of S$100,000 and being subject to various management and performance fees.

In a press release shared with CryptoNews, ADDX CEO Choo Oi-Yee highlighted that the fund strikes a balance between value and growth stocks, representing distinct approaches to unlocking potential returns in equity investing.

While value stocks promise steady growth as they recover from perceived undervaluation, growth stocks offer potential for explosive growth with higher risk and volatility.

AAM Introduces AI-Enabled Fund

Founded in 2012, AAM’s strategy of acquiring stocks at a discounted price has delivered a commendable compound annual growth rate of 6.1%.

The introduction of artificial intelligence technology in managing the fund in 2021 has proven successful, with the fund surpassing its benchmark, the MSCI AC Asia Pacific Index, by 35%.

However, AAM founder Eric Kong emphasized that the AI serves as an enhancement, not a replacement, for their analytical process, with human analysts conducting qualitative checks on every stock chosen by the AI.

ADDX’s Choo expressed excitement about being part of the evolving landscape of investing, where data-driven strategies and artificial intelligence converge to offer new possibilities for investors.