Singapore’s blockchain-powered private markets exchange, ADDX, has added a deep-value equity fund managed by Aggregate Asset Management (AAM) to its platform.
The fund employs machine learning to optimize its investment strategy and returns. It aims for a compound annual growth rate of 8% and operates as an open-ended fund, allowing continuous participation.
Aggregate Asset Management is chaired by Kishore Mahbubani, a veteran diplomat and geopolitical analyst. Mahbubani previously served as Singapore’s Permanent Representative to the United Nations and as President of the United Nations Security Council. The listing on ADDX reflects a continued integration of blockchain technology in the financial markets, providing investors with new opportunities and streamlined access to private market assets.
Diverse Equity Fund Invests in 1300 Stocks
The offering by Aggregate Asset Management (AAM) involves a diversified portfolio comprising over 1,300 stocks listed across 17 markets, including major ones such as Singapore, Hong Kong, Japan, the United States, and Germany.
In conjunction with its listing on ADDX, investors have the opportunity to subscribe to an ADDX-exclusive share class with a minimum investment of S$10,000. This exclusive share class comes with the advantage of no performance fees, and management fees are waived until December 31, 2025.
In contrast, investors subscribing directly through AAM typically face a higher entry requirement, needing a minimum investment of S$100,000 and being subject to various management and performance fees.
ADDX CEO Choo Oi-Yee emphasized that the fund strikes a balance between value and growth stocks, representing distinct approaches to unlocking potential returns in equity investing. Value stocks offer steady growth as they recover from perceived undervaluation, while growth stocks present the potential for explosive growth with higher risk and volatility. This offering on ADDX provides investors with a more accessible entry point and fee structure compared to the traditional investment route.
AAM Introduces AI-Enabled Fund
Founded in 2012, Aggregate Asset Management (AAM) has pursued a strategy of acquiring stocks at discounted prices, yielding a commendable compound annual growth rate of 6.1%. The introduction of artificial intelligence (AI) technology in managing the fund in 2021 has proven successful, with the fund outperforming its benchmark, the MSCI AC Asia Pacific Index, by 35%.
AAM founder Eric Kong highlighted that AI serves as an enhancement rather than a replacement for their analytical process. Human analysts conduct qualitative checks on every stock selected by the AI, ensuring a combination of machine-driven insights and human expertise.
Choo Oi-Yee, CEO of ADDX, expressed excitement about being part of the evolving landscape of investing. The convergence of data-driven strategies and artificial intelligence opens up new possibilities for investors, reflecting the transformative impact of technology in reshaping traditional financial practices.