Veteran US investor Jim Rogers is behind a new artificial intelligence ETF, launched today (20 June).
The Rogers AI Global Macro ETF, known as BIKR, will be the first passive ETF that uses AI to determine every investment decision, as well as revealing the specific processes behind each decision.
BIKR will track an index of single-country ETFs that was developed by Ocean Capital Advisors, one of the companies behind the launch. The fund will use an AI-driven algorithm that analyses macroeconomic data “to identify likely changes in market directions in individual countries and within the global economy” over the next 18-month period.
Also involved in bringing the investment to market is ETF Managers Group (ETFMG).
The hope is that the “multi-decade expertise” of Mr Rogers would give ETFMG and Ocean greater insight.
“ETFs provide effective building blocks for a top-down approach, as there is an ETF that offers convenient access and enhanced liquidity to almost every emerging country,” said Manuel Fajardo, chief investment officer of Ocean Capital Advisors.
“This allows us to focus on the optimally allocated global portfolio through greater insight on macroeconomic indicators by including the unique perspective of Rogers, made evident over his distinguished career, via the use of the artificial intelligence immense processing and analytical ability.”
Mr Rogers is the chairman of Ocean Capital., joining the board in January.
He said today:“The internet and artificial intelligence are changing and have changed everything we know including finance and investing; Ocean’s new ETF is part of the same trend.”
“I hope we get it right. We will all be extremely pleased someday if we do.”
Sam Masucci, founder of ETFMG, described Mr Rogers as a “rock star investor”.
“Artificial intelligence is constantly evolving and changing the asset management space, and a product like BIKR satisfies growing investor needs," he said.
Mr Rogers is a regular spokesman on investment on many US news channels. A Vietnam veteran, he worked with George Soros in 1970, and is a founder of the Quantum fund.
In 1998, Rogers founded the Rogers International Commodity Index. Based in Singapore he is a strong advocate of agriculture investments and learning Mandarin Chinese to "prepare for the future".
Victor Sacks, IFA at VS Services, said he would have no problem with funds for his clients being managed by artificial intelligence.
"If they meet client outcomes at a reasonable price then I am all for it - for me that is the fulcrum on which everything rests so I say 'yes', let's get under the bonnet."