Sanlam transfers UCITS Managed Risk fund to AI approach

Sanlam Global Investment Solutions has transferred the management of its UCITS Managed Risk fund to artificial intelligence specialists AI Machines to create what the firm believes to be the first balanced fund that is 100% driven by machine learning processes.

The Dublin-domiciled fund was initially launched in 2013 and was run as a systematic strategy, but it was decided to move the vehicle to an artificial intelligence approach that uses self-learning adaptive algorithms to smooth out V-shaped returns. Gideon Nell, global head of business development at the South Africa-based firm, said: "We as an industry have a major problem facing us. We are in the longest equity bull market, after central bank action significantly drove up stocks, and bond yields are at all-time lows.  "What happens when these assets converge? They typically correlate...