Singapore’s blockchain-powered private markets exchange, ADDX, has recently announced the listing of a deep-value equity fund managed by Aggregate Asset Management (AAM). This fund, which utilizes machine learning to optimize investment strategy and returns, aims to achieve a compound annual growth rate of 8%, and it is open-ended for investors.
Leadership and Investment Approach
Aggregate Asset Management is led by Kishore Mahbubani, a well-respected diplomat and geopolitical analyst, who brings his expertise to the management of the fund. Mahbubani, who has served as Singapore’s Permanent Representative to the United Nations and President of the United Nations Security Council, brings a wealth of experience to the table.
The AAM deep-value equity fund is invested across a diverse portfolio of over 1,300 stocks listed in 17 markets, including prominent ones like Singapore, Hong Kong, Japan, the United States, and Germany. The fund’s investment strategy is focused on acquiring stocks at discounted prices, which has delivered a commendable compound annual growth rate of 6.1% since its inception in 2012.
Advantages for Investors
By listing the AAM fund on ADDX, investors now have the opportunity to access an ADDX-exclusive share class with a minimum investment size of S$10,000. This lowers the barrier for entry compared to investing directly through AAM, which typically requires a minimum investment of S$100,000. Additionally, investors on ADDX enjoy the benefit of no performance fees, and management fees are waived until December 31, 2025.
The AAM deep-value equity fund strikes a balance between value and growth stocks, offering investors the potential for steady growth and explosive growth, respectively. Value stocks, which are perceived to be undervalued, promise steady growth as they recover, while growth stocks offer higher risk and volatility, but with the potential for significant returns. The combination of these two strategies aims to unlock potential returns in equity investing for investors.
An exciting development in the management of the AAM fund is the introduction of artificial intelligence (AI) technology in 2021. The AI serves as an enhancement to the fund’s analytical process, utilizing machine learning algorithms to analyze and optimize investment strategies. However, it is important to note that the AI is not a replacement for human analysts, as qualitative checks are conducted by the team before making stock selections.
The listing of the AAM deep-value equity fund on ADDX represents a significant opportunity for investors to access a diversified portfolio of stocks managed by a reputable team. With the benefit of no performance fees and reduced investment barriers, investors can take advantage of the potential returns offered by both value and growth stocks. The use of artificial intelligence as an enhancement to the fund’s analytical process further adds to the appeal of this investment opportunity. This development showcases the evolving landscape of investing, where data-driven strategies and artificial intelligence converge to offer new possibilities for investors.
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