DWS has launched an equity fund whose stock selection is based on the use of artificial intelligence.

The fund is a joint product of DWS and Arabesque AI and comprises between 60 and 70 stocks from the MSCI World universe. The fund picks up on the three megatrends that DWS has identified for the coming decade: Low interest rates, sustainability and digitalization and uses AI to generate signals that indicate the attractiveness of stocks. DWS’s quantitative investment specialists use these to build a portfolio that is diversified regionally and across sectors, and review it on a monthly basis.

“With the product, we combine the advantages of artificial intelligence with the expertise of our investment managers in an actively managed investment fund. By combining the unique strengths of both partners, we can better analyze the exponentially growing amount of data through innovative technologies to derive new insights,” says Manfred Bauer, head of the product division at DWS.

Yasin Rosowsky, co-CEO of Arabesque AI, adds: “Advancements in AI technology are driving transformation of the global marketplace. The launch of the DWS Concept ESG Arabesque AI fund is the result of a strong collaboration between Arabesque and DWS, combining DWS’ fund management expertise with Arabesque’s AI capabilities to co-develop a cutting-edge investment product. We are delighted to be partnering with DWS on this exciting new offering.”