The Frankfurt based asset manager Catana Capital launches the Data Intelligence Fund (DE000A2H9A68), an innovative UCITS fund, that relies entirely on Big Data and Artificial Intelligence (AI).
Data Intelligence Fund
- Combination of Big Data analysis and Artificial Intelligence forms basis of investment decision.
- Selective investment in European Large Cap stocks.
- Attractive risk-return profile due to management of exposure level via index futures.
For the investment decisions, internet data on securities and financial markets are automatically collected, filtered, weighted and analysed in seven countries and in three languages. In this way, almost two million capital market-related news items are evaluated in real time every day.
Using this algorithm, buy and sell recommendations for European large cap stocks and index futures are generated in a purely data-based process. “The aim of the fund is to achieve a positive return that exceeds the long-term average return of the DAX index. At the same time, the aim is not to generate negative annual returns,” says Bastian Lechner, Managing Director of Catana Capital. The target group includes both professional and private investors.
Who says what to which security?
Via the Big Data analysis more than 45.000 securities are covered in real-time. “The key question is: Who says what to which security? In a first more than 5 terabyte of information are collected per month. This is more than 21 messages per second. In a second step, the algorithm evaluates the information”, Lechner continues. The system assigns to every security a preliminary positive or negative signal based on the collected information.
Though, before a final trading signal is generated, the AI analyses how a security has performed in the past after such a positive or negative signal. Only with a high success probability, a trading signal is generated. The new decision and its performance result are added to the database and therefore included for future trading signals going forward – the system is self-learning on an automated basis.
“The stock selection approach is supplemented by an asset allocation component. If the overall assessment of the equity market is negative, the risk is reduced by index futures and can even be net short,” says Lechner. “Especially in phases of corrections and downturns in equity markets, the algorithm has shown its strength and reduced risks at an early stage. As a result, we achieve a high diversification effect, limit risks and dependence on volatile capital markets and can achieve attractive results even in a challenging environment,” explains Lechner.
Fund information at a glance
|Fund name||Data Intelligence Fund|
|Advisor||Catana Capital GmbH|
|Administrator||Ampega Investment GmbH|
|Custodian||Hauck & Aufhäuser Privatbankiers AG|
|Share classes||P (Retail) / I (Institutional)|
|WKN / ISIN||A2H9A6 / DE000A2H9A68 (P) / A2H9A7 / DE000A2H9A76 (I)|
|Management Fee||1.88% (P) / 1.35% (I)|
|TER (estimate)||2.12% (P) / 1.59% (I)|
|Minimum investment||0 EUR (P) / 1,000,000 EUR (I)|
|Up-front charge||up to 5.25% (P) / up to 1.25% (I)|
|Performance fee||20% of the amount by which the fund price at the end of a settlement period exceeds the fund price on the valuation date of the last 5 years (“high water mark”), but not more than a total of 15% of the average value of the fund in the settlement period.|
About Catana Capital
Catana Capital GmbH is a financial institution, licensed according to section 32 German Banking Act and domiciled in Frankfurt, Germany. Catana Capital GmbH was founded in August 2015 and manages the Data Intelligence Fund, an exclusively Big Data- and A.I.-based public UCITS fund.