UK listing reform is too important to be stalled by small stakeholders

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The AI rally is scary

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Meet the team plotting to revive the UK’s capital markets

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Partner Insight: The time is now – there’s never been a better time to be an IFA

Justine Randall, Chief Commercial Officer at Tatton Investment Management, says that the demand for quality financial advice has never been higher and that there are tremendous opportunities ahead for young financial advisers to be a trusted partner for decades to come.

Read the Q&A in the brand new MPS Watchlist, which not only includes this article, but other fantastic content from 8AM Global, Quilter, Quilter Cheviot, Tatton Investment Management and Timeline.

The real risks for investors after the rise of the European far right

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Polish state energy group seeks to show political independence through media sale

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German bank Baader to launch ‘AI-enhanced’ active ETF

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Germany’s Baader Bank is entering the exchange traded fund market with a strategy that will use artificial intelligence to aid stock selection.

The investment management arm of Baader plans to launch an “AI-enhanced” eurozone equities ETF that will trade on the Xetra exchange in Frankfurt, according to the fund’s supplement.

The Ireland-domiciled ETF will use “a holistic AI-driven stock selection model” to generate returns in excess of a eurozone equity index developed by MSCI.

The model has been designed by Ultramarin, an AI investment specialist company, to predict the monthly excess return for each stock in the investment universe of eurozone equities.

The fund is expected to launch later this month, according to the regulatory document, but Ultramarin said the Xetra listing was still pending approval from Germany’s financial regulator.

Ultramarin is also developing AI-enhanced ETFs focused on global and US equities, and its technology is already available in three mutual funds, according to its website.

A senior Goldman Sachs executive sits on the board of the ETF’s umbrella fund.

Sailesh Pradhan is head of client services for Europe, the Middle East and Africa at Goldman Sachs ETF Accelerator, a white-label business set up in 2022 that has yet to launch its first funds in Europe.

Goldman declined to comment on whether the ETF accelerator had helped develop the AI-enhanced fund, but a person with knowledge of the matter said Goldman’s asset management business was not involved.

This article was previously published by Ignites Europe, a title owned by the FT Group.

Baader’s ETF follows the recent launches of AI-assisted mutual funds by Lazard Asset Management and Pictet Asset Management, while WisdomTree is among the companies to have launched similar ETFs in the US.

Kenneth Lamont, senior research analyst at Morningstar, said the fund would be the first active ETF in Europe to “so heavily rely on AI” to select stocks.

But he said the fund “screams ‘over-engineered’”.

“The obvious holy grail here is that an AI strategy can leverage huge and diverse data sets to glean unique investment insights and provide consistent alpha to investors,” he said.

“The clear downside here is a lack of live track record and lack of transparency.”

Lamont added that transparency was one of the strengths of ETFs and that, although the Baader

HPS amasses $21bn private credit fund as it plots expansion

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Business needs to calm down about French election, says Euronext CEO

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