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DWS launches its first AI-powered fund

Artificial intelligence 2German fund manager DWS has launched an ESG equity fund that will select stocks using artificial intelligence (AI).

The DWS Concept ESG Arabesque AI Global Equity fund is the first product to result from the partnership between DWS and UK-based AI firm Arabesque that was struck in early 2020.

The actively managed total return fund will comprise between 60 and 70 stocks from the MSCI World index and will be focused on ESG criteria.

According to DWS and Arabesque, while AI "will increasingly take on an important role in asset management", its use in this fund is intended to support rather than replace analysts and fund managers.

Arabesque’s AI engine is designed to predict stock market movements and will generate daily signals that DWS’s quantitative analysts can use to build and review the portfolio.

The launch underlines the growing momentum behind AI-powered funds. Amundi also unveiled a fund partly managed by AI in Singapore this month. The Amundi Smart Portfolio 2025 will have roughly 5.5% of its portfolio managed by AiMAX, an AI engine developed by HSBC and AI specialist Equbot.

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