ADDX, the blockchain-powered private markets exchange based in Singapore, has recently added a deep-value equity fund to its platform. This fund is managed by Aggregate Asset Management (AAM), an investment management firm that utilizes machine learning to optimize investment strategy and returns. The fund aims to achieve a compound annual growth rate of 8% and remains open-ended for investors.
Aggregate Asset Management is led by Kishore Mahbubani, a highly experienced diplomat and geopolitical analyst. Mahbubani, who served as Singapore’s Permanent Representative to the United Nations and President of the United Nations Security Council, chairs AAM. With his vast knowledge in international affairs, Mahbubani brings a unique perspective to the fund management process.
A Diverse Portfolio of Stocks
The deep-value equity fund offered by AAM is invested across a diverse portfolio of over 1,300 stocks listed in 17 markets. These markets include prominent ones such as Singapore, Hong Kong, Japan, the United States, and Germany. By spreading the investments across various markets, the fund aims to mitigate potential risks and capture opportunities for growth.
Exclusive Opportunities for Investors
As part of the listing on ADDX, investors have the exclusive opportunity to subscribe to an ADDX-share class with a minimum ticket size of S$10,000. One of the key advantages of investing through ADDX is the absence of performance fees, and management fees are waived until December 31, 2025. Comparatively, investing directly through AAM usually requires a minimum investment of S$100,000 and entails various management and performance fees.
Choo Oi-Yee, the CEO of ADDX, emphasized that the deep-value equity fund offered by AAM strikes a balance between value and growth stocks. This approach represents distinct strategies to unlock potential returns in equity investing. Value stocks, which are perceived to be undervalued, offer steady growth over time. On the other hand, growth stocks present the potential for explosive growth but come with higher risk and volatility.
A Path of Success
Founded in 2012, AAM has been successful in delivering a commendable compound annual growth rate of 6.1% through its strategy of acquiring stocks at discounted prices. In 2021, the introduction of artificial intelligence technology to manage the fund has further improved its performance. The fund has surpassed its benchmark, the MSCI AC Asia Pacific Index, by 35%.
Eric Kong, the founder of AAM, emphasized that the AI technology 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 comprehensive and robust investment approach.
The Evolving Landscape of Investing
ADDX’s CEO, Choo, 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. The deep-value equity fund managed by AAM showcases how advancements in technology can enhance investment strategies and potentially generate higher returns.
The listing of the deep-value equity fund on ADDX provides investors with a unique opportunity to tap into AAM’s expertise and benefit from their innovative investment approach. With a diverse portfolio, a balance between value and growth stocks, and the integration of AI technology, this fund presents a compelling investment proposition for those looking to navigate the private markets with confidence.