Farringdon Group has begun integrating an artificial intelligence (AI) neural network capability into its ALGEBRA Robo Adviser, less than six months since Asia’s first Islamic robo adviser made its debut in July.
The Labuan-based asset manager engaged Californian start-up Maxsys AI to develop the AI neural network capability. According to Farringdon Group, Maxsys AI’s cloud-based centralized intelligence has the ability to process millions of data points from around the world and analyze them, simultaneously, in numerous dimensions. This universal perspective, combined with adaptive rules, gives Maxsys AI investing insights and scalability that were previously not possible.
The offshore investment manager clarifies that although investment decisions are made by the neural network, the strategy is not one of high frequency trading but instead is a longer-term consistent approach which will rely on an individual in the loop to oversee investment selections made.
Designed to emulate certain significant attributes in the functioning of the human brain, AI neural network is a trainable algorithm with the ability to learn from observing data sets and is used as a tool to predict financial time series and most cost-effective or ideal solutions based on historical information.
“We foresee massive potential in the use of neural nets for investment management strategies in the coming years. AI investment management not only opens a new asset class but has the potential to revolutionize the management of traditional asset classes,” said Martin Young, CEO of Farringdon Asset Management.
The AI management feature is available for its Islamic investments; Farringdon intends to eventually implement this across its conventional portfolio following a successful trial.
“The rapid deployment of this neural network highlights the capabilities our virtual mutual fund technology can provide for the rapid role out of new investment ideas and technology. I think it’s is a credit to Malaysia and our regulators to see the first real world application of this technology taking place in Malaysia before anywhere else in the world and we are very excited to have a US-based partner like Maxsys AI to work with,” Group CEO Stuart Yeoman shared.