HSBC is launching its own AI-powered equity index, powered by Amazon’s web services subsidiary.
The HSBC AIGT index leverages artificial intelligence (AI) capabilities of Amazon Web Services (AWS) to carry out an AI-based index investment process and automatically adapts its approach as market changes occur. According to HSBC, the index rebalances its portfolio weekly, and, to manage short-term volatility, reallocates among the chosen portfolio and cash on a daily basis.
“Successful investment strategies of the future require the ability to analyze and learn from the growing amount of data, and react quickly to changing market conditions,” said Dave Odenath, Global Head of Quantitative Investment Solutions at HSBC Global Banking and Markets, in a statement. “HSBC AIGT puts the power of an adaptive AI system fueled by data into a global tactical allocation framework, creating a systematic investment strategy that is designed to keep up with and thrive in increasingly complex markets.”
“Using AWS artificial intelligence and machine learning capabilities for the HSBC AI Global Tactical Index, HSBC is meeting the industry’s evolving needs as it continues to develop innovative solutions for the investment community,” said Scott Mullins, Managing Director, Worldwide Financial Services Business Development at AWS. “We are excited to collaborate with HSBC across their machine learning initiatives powered by AWS.”
Ibexis Life & Annuity Insurance Company (Ibexis), a provider of retirement savings products, will act as the exclusive provider of HSBC AIGT in its suite of fixed indexed annuities.
The announcement comes as the investment and retirement industry slowly introduce new efforts in the artificial intelligence space, and as more traction develops with AI outside of ChatGPT.
BenchMine, a free 401(k) comparative analytics tool released last November and powered by OnlyBoth’s AI innovations, provides its information in clear English sentences to deepen 401(k) knowledge for plan sponsor, providers, participants, plan advisors, and stakeholders.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
