Strategic AI Investment Partnership in fintech Level E Research by M&G
Level E Research has announced that it has received a minority stake investment from M&G plc in its latest seed funding round. The two companies are collaborating to develop a suite of investment strategies using Artificial Intelligence (AI). The AI investment strategies will be focused on regional equity markets and will be supported by an initial investment of GBP £100 million each. The first strategy, AI Smart US, has already been launched, with the aim of outperforming the US S&P 500 Index. The other strategies will have a similar aim of delivering excess investment returns compared to specific financial indices.
AI investment strategies rely on powerful computers to analyse vast amounts of data to identify investment opportunities. They can uncover value in areas that are difficult for humans to recognise and execute investment decisions faster and more efficiently. Additionally, they benefit from economies of scale and scope, making them more cost-effective.
Edinburgh-based Level E Research, founded by Dr. Sonia Schulenburg, is pioneering an innovative approach to AI-driven investing using a process called "Co-Creation." Institutional investors can use this approach to create bespoke AI-driven investment strategies that run on Level E's in-house "E-platform." The strategies are backed by rigorous academic research.
M&G and Level E Research aim to bring AI and Machine Learning to the forefront of investment management. Dr. Sonia Schulenburg, CEO of Level E Research, expressed her excitement about the partnership with M&G and stated that Level E Research is perfectly positioned to provide AI solutions that empower the investment industry in the UK and beyond. David Montgomery, Managing Director at M&G Wealth, emphasised that AI solutions are becoming increasingly important in constructing bespoke investment options and that the partnership with Level E Research will help to offer a wide range of investment choices at a great value to financial advisers and clients.