ADDX lists a deep-value equity fund, managed by AAM

The fund targets a compound annual growth rate of 8% and is open-ended

Oi-Yee Choo, CEO, ADDX

Kishore Mahbubani, Chairman, AAM

FinTech BizNews Service

Mumbai, November 23, 2023: Private market exchange ADDX has listed a deep-value equity fund, managed by Aggregate Asset Management, that uses machine learning to optimise investment strategy and returns. Aggregate Asset Management is chaired by veteran diplomat and geopolitical analyst Kishore Mahbubani, who formerly served as Singapore’s Permanent Representative to the United Nations and President of the United Nations Security Council. The fund management team taps Professor Mahbubani’s geopolitical expertise when evaluating investment opportunities.

Some key points in the announcement:   

• The fund targets a compound annual growth rate of 8% and is open-ended 
• An ADDX-exclusive share class, which was launched and made available to investors at a minimum ticket size of S$10,000, does not charge any performance fees and has waived management fees till 31 Dec 2025 
  • On the other hand, investors who subscribe directly via AAM typically have to invest a minimum of S$100,000 and be subject to varying management as well as performance fees. 
• Incepted in 2012, the Aggregate Value Fund’s strategy of acquiring stocks at a discounted price has delivered a compound annual growth rate of 6.1% 
  • In 2021, the fund managers started to use artificial intelligence (AI) technology to enhance its stock-picking methodology by evaluating 150 factors – 50 fundamental indicators, 50 technical indicators and 50 financial journal indicators – that influence the performance of company shares. 
• AAM founder and executive director Eric Kong said: “Since the adoption of AI in managing AVF 3 years ago, we have beaten our benchmark, the MSCI AC Asia Pacific index, by 35%. Despite such sterling results, our human analysts are still in charge of performing qualitative checks on every stock the AI picks. Our AI will always be an enhancement, not a replacement, of our analytical process.” 
• · AAM chairman Kishore Mahbubani said: “I believe in the management team's capabilities and the long-term performance prospects of the fund, investing in the untapped opportunities across Asia's high-growth emerging markets.” 
•  ADDX CEO Oi-Yee Choo said: “In the world of equity investing, value and growth stocks represent two distinct approaches to unlocking potential for substantial returns. Value stocks offer the promise of steady, consistent growth as they recover from their perceived undervaluation, while growth stocks captivate investors with their potential for explosive growth and market dominance – though this often comes with higher risk and volatility. AAM's deep-value equity fund strikes a balance between these two approaches – the fund’s AI-powered strategy uses sophisticated pattern recognition algorithms to seek out companies trading at relatively cheap valuations compared to their earnings and long-term growth prospects, which allows the fund managers to uncover hidden gems in the market and capitalise on mispricing anomalies that may not be readily apparent to traditional investment methods.”