Arabesque launches the world’s first AI-powered ESG portfolio manager

By Joy Dumasia

Arabesque has unveiled its Autonomous Asset Management offering to create highly customised and sustainable active investment strategies powered by an artificial intelligence technology that can generate and operate millions of active equity strategies. Developed by Arabesque AI, ‘AutoCIO’ enables asset managers and investment professionals to configure and build hyper-customised active strategies that can be tailored to each investor through more than a thousand different personalised investment options.

The launch comes as the asset management industry increasingly leverages technologies like automation and AI for cost-efficient product development, alpha generation and delivering a customised and differentiated client experience. With over USD 400 million currently powered by Arabesque’s AutoCIO, the platform offers investors an unprecedented degree of customisation through a streamlined web app that can generate a vast range of bespoke strategies, with AI used to forecast stock performance across 25,000 equities daily.

Georg Kell, Chairman of the Arabesque Group, said: “Artificial intelligence will play a pivotal role in the customisation of active investing in the coming years, with pressure growing to innovate both in terms of technology and client centricity. Whilst the market is increasingly demanding sustainable products that align with the objectives and values of investors, asset managers are currently unable to offer customisable, active solutions at scale. Investment firms face a fast-changing landscape where many traditional products, tools and approaches are no longer as relevant as they once were. AutoCIO is a game-changing solution that can enable asset managers to deliver an enormous range of highly customised ESG investment strategies in a cost-efficient and scalable way. Sustainability issues are fast becoming a global priority, and new technologies like this will empower many more investors to participate.”

Recently, IBS Intelligence reported that credit and asset management technology provider Linedata announced that it would be integrating Environmental, Social and Governance (ESG) data into asset managers’ workflows through collaboration with leading independent provider Arabesque S-Ray.