1 year ODDO BHF Artificial Intelligence
PARIS, LUXEMBOURG, 12.02.2020
1 year after its launch, the ODDO BHF Artificial Intelligence fund demonstrates the effectiveness of "Big Data" technologies in asset management.
ODDO BHF Artificial Intelligence has proven the value of Artificial Intelligence in the investment process of mutual funds. With an annualized return of the institutional CIw-USD share class since inception* of +27.0% vs. +23.3% for its benchmark (MSCI World NR USD), the process has shown its worth in a volatile year. Per 31 January 2020 the assets under management are at € 73 million from both institutional and private investors.
ODDO BHF AM has been one of the first European asset management companies to use artificial intelligence algorithms to tackle thematic investing. The fund not only invests in artificial intelligence (AI) but also uses AI algorithms with the aim to identify relevant stocks. It gives investors a comprehensive exposure to the AI theme, by selecting globally companies of all sizes, that are developing or using AI.
Practically, these algorithms were developed to characterize precisely the thematic and the most relevant companies linked to it, filtering out an investment universe beyond human capacity to embrace, when more than 80% of the available data are unstructured.
ODDO BHF Artificial Intelligence is managed by a team of three headed by Brice Prunas. The fund is composed of 60 stocks identified by AI algorithms, filtered then by a proprietary quantitative multifactor model and finally analysed by the portfolio management team.
Brice Prunas, Global thematic Equity Fund Manager, ODDO BHF Asset Management SAS, explains: “Artificial Intelligence today impacts all sectors of the economy. There are huge technology players on the one hand and a myriad of smaller players, specializing in fast-growing niches. Also, a lot of nontech companies involved directly in the AI value chain or using AI to disrupt their own value chain. There are so many actors, news, breakthroughs and pieces of information to digest that we need the support of artificial intelligence to screen the market, identify important information and finally find the relevant stocks."
Nicolas Chaput, Global CEO – ODDO BHF Asset Management, says: “Artificial Intelligence (AI) is a new journey we all embark on. One year ago, after 18 months of collaborative research, we launched one of the first thematic fund using AI embedding algorithms to select securities worldwide. After the success with Artificial Intelligence we intend to transfer this model to other mega themes.”
* Data as of 31 January 2020 | Past performance is not a reliable indication of future return and is not constant over time. Fund is exposed to a risk of capital loss.
Rated by the UN-PRI, proud to have maintained our A+ rating for “strategy & governance” and “Equity”. Fixed Income moves from C to B thanks due to recent developments in ESG integration process and dialogue & engagement.
UN-PRI rating: Our A+ rating for "strategy & governance" and "equity" maintained.
ODDO BHF Asset Management is extending the integration of ESG criteria to its ODDO BHF European Convertibles Moderate fund.