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Fintech AM launches AI-driven certificate with Julius Baer

Fintech AM launches AI-driven certificate with Julius Baer

Schwyz-based fintech firm Nectar Financial is set to launch its first artificial intelligence investment module, the firm has announced.

The Nectar Smart Alternatives is an actively managed certificate issued by Julius Baer. The intitial subscription period will last until 16 February 2018, with the official launch expected at the end of February.

The new product will allow clients to invest in a digitally sourced portfolio of hedge funds, mutual funds, exchange-traded funds and cash.

The investment process will leverage artificial intelligence, big data and the investment expertise of the firm's advisers.

Nectar Financial has developed the certificate in co-operation with Schwyz-based fund platform Fundbase, spin-offs of ETH/University Zurich and due diligence provider Castle Hall.  

The Nectar Smart Alternatives strategy uses algorithms that identify best in class managers, based on data provided by Fundbase.

This will result in a portfolio of uncorrelated risk/return factors that are meant to shape a broadly diversified portfolio.

The automation rate of the portfolio is 80%, which is meant to reduce costs.

The product is supported and developed by Nectar Digital Lab, a division that was set up after the firm hired several AI specialists in July 2017.

In November 2016, the firm hired Andreas Gilgen, former CIO and head of research at GL Funds, as head of alternative intelligence and partner. 

Commenting on the launch of the certificate, Michael Appenzeller, CEO of Nectar Financial, said the firm sees the future of asset and wealth management in mastering data and AI-based technology.

‘Nectar Smart Alternatives is the first of a series of services and products that are developed based on our proprietary machine learning and AI-based investment engine.’

‘With the first product, we focus on low correlation as well as low volatility and attractive returns in alternative investments,’ he added.

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