Glacier Quarterly 3 - 2018

The power of ML
ML is the ability of machines to learn
by themselves and improve their
own performance. They don’t rely
on human-driven rule-based
programming, instead using AI
algorithms that identify patterns
across data and predict future
market direction and magnitude.
Importantly, the AI can learn and
adapt in order to improve the quality
of the predictions as time goes on.
We could view ML as a way of
getting computers to ‘know things
when they see them’ by producing
for themselves the rules their
programmers cannot specify.
How Sanlam uses AI
At Sanlam Global Investment Solutions
(SGIS) we use an AI and ML
investment engine in the management
of our investment solutions. The
predictive investment engine analyses
and interprets available data to:
• Identify and predict evolving
market behaviour
• Minimise the capital loss and time
in loss (drawdowns)
• Maximise portfolio outcomes
(total returns).
In June 2017, the Sanlam Managed
Risk (SMR) UCITS Fund started using
AI to provide intelligent exposure to
markets for its investors. This year,
the SMR Fund was shortlisted for
Investment Week’s Specialist
Investment Awards 2018, potentially
making it the first UCITS fund
leveraging AI to receive such a
nomination. The SMR Fund is available
on the Glacier International platform.
Using the same active AI proprietary
fund management techniques, Glacier
Management Company has also
launched the Glacier AI Flexible Fund
of Funds, a multi-asset flexible fund
diversified across property, bonds
and equities. The Glacier AI Flexible
Fund of Funds launched on
3 September 2018.
The world’s markets are evolving and
advancing at ever increasing speeds
and Sanlam is providing clients with
intelligent exposure to markets
through the use of AI and ML. By
leveraging these tools, we create
investment strategies that adapt
quicker to constantly evolving markets,
with the aim of providing investors
with a better investment experience.
We believe that man with machine is
far more efficient than man alone.
All of these should lead to a better
investment journey for clients.
The purpose of our AI proposition is
to address investors’ primary concern
– their risk of capital loss – by
providing a solution that can
proactively adapt as quickly as markets
evolve in order to supply them with
improved investment outcomes.
Gavin Meiring,
Sales and Marketing
at Sanlam Global
Investment Solutions
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