Core Benefits

Benefits

The core benefits of the AI Dragon are related to:

Performance
Customisation
Efficiency
Analytical capabilities

We now examine each in further detail.

1. Performance

93% of funds underperform their respective benchmark.

Source: S&P

AI Dragon enhances benchmark relative performance through the integration of AI signals, and through disciplined portfolio construction. These are set out below:

AI Signals

AI Dragon utilises AI signals which are in the form of a prediction for the future expected returns of stocks.
AI predictions attempt to improve upon fundamental and quantitative approaches since they:
- leverage more data,
- make a limited number of stringent assumptions, and
- dynamically respond to new market regimes through the retraining of models.

Disciplined Portfolio Construction

The platform provides users access to a comprehensive portfolio optimizer that can integrate alpha sources, risk models and constraints.
The platform features a sophisticated risk model that monitors and controls exposure to common market factors like momentum, value, and size.
The platform accommodates portfolios of any size through advanced transaction cost modeling that accounts for both direct trading costs and market impact.

2. Customisation

80% state that "customisation for the masses" will be a key growth driver.

Source: Accenture

AI Dragon enables deep customization for users to create new portfolios, as well as enhancing existing portfolios.

Create bespoke portfolios

Starting from 100k stocks, users can filter across sectors, countries, styles, etc. to create bespoke investment universes. Furthermore, users can also create investment universes based on existing benchmarks (such as S&P), as well as their own custom benchmarks that they upload to the platform.
With an investment universe, the portfolio construction stage can further incorporate:
- Targets ranging from alpha maximization to trading cost minimization
- Risk controls ranging from benchmark tracking to factor risk tracking
- Constraints ranging from stock level to portfolio level

Enhance any portfolio

Any portfolio on the platform can be flexibly reconfigured with a different universe, alpha targets, risk controls, constraints.
Enhancements can be run side by side with existing funds (both historically and going forward) to enable users to test changes to their investment process

3. Efficiency

80% of asset managers see tech driving growth.

Source: PWC

AI Dragon enables greater tech-driven efficiency via an easy-to-use platform and a flexible API.

Easy to use web-based platform

AI Dragon is offered as a no-code cloud-based platform.
AI Dragon covers a large amount of common portfolio management tasks including uploading an existing portfolio, creating a new portfolio (e.g. for a sector, country or investing style), searching for existing funds, enhancing current portfolios, analyzing portfolios, reporting on portfolios etc.

API for power users or integration with other platforms

Advanced users can utilize the API (e.g. via code) in a flexible manner.
Furthermore, other platforms can utilize the API to bring AI Dragon functionality to their existing platform.

4. Analytics

43% see AI speeding up market time.