INTRODUCING
BNPP X-AI INDEX
The BNP Paribas Cross Asset Trend & AI Index (the “BNPP X-AI Index”) is a rules-based index designed to combine traditional trend-based investing techniques with Artificial Intelligence capabilities, targeting an optimal allocation of diverse global assets. The strategy mixes both approaches, aiming to capture the full range of available relevant information to its component allocation, including backward-looking data (through systematic signals based on historical observations) and forward-looking indicators (through artificial intelligence analysis).
The Artificial Intelligence techniques used are powered by Quantum Street AI and IBM Watson.
For more information on the Index performance and statistics, please click here.
For a list of selected risks and considerations with the Index, please click here.
BNP PARIBAS HYBRID INTELLIGENCE STRATEGY
Aims to identify asset trends in order to allocate more heavily towards recent outperformers.
Historical, backward-looking
For each component, aims to identify the expected return and a confidence score through a proprietary algorithm.
Prediction, forward-looking
BNPP X-AI INDEX FEATURES
The BNPP X-AI Index contains 8 components which are indices that cover:
3 asset classes: Equities, Commodities and Bonds
3 geographical regions: US, Europe, Japan
Based on the principles of:
• Diversity in geographic zones covered
• Use of market benchmarks
• Representing multiple asset classes
On a daily basis, the BNPP X-AI Index dynamically rebalances the weights of its components by computing the average weight between the two approaches below:
• Long allocation based on traditional momentum investing principles and historical signals
• Long / short allocation based on AI to analyze forward-looking sentiment, macro-economic and financial indicators
Both approaches are subject to certain volatility and weighting constraints.
The BNPP X-AI Index targets an annualized realized volatility of 5%.
If the realized volatility of the selected components exceeds the 5% target volatility rate on any day, the BNPP X-AI Index will reduce the weight of the components and rebalance it with a non-remunerable hypothetical cash position.
For information purposes only - Not for Further Distribution
DOWNLOAD MATERIAL
BROCHURE
A 10-page overview of the Index complete with performance information and definitions of key terms.
Updated monthly.
FACTSHEET
A more concise overview of the Index, complete with latest performance information.
Updated monthly.
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