Introducing AiPEXAR, an Artificially Intelligent Index with IBM WatsonTM

AI Powered Investing

The suite of AI Powered US Equity Indexes are the first and only rules-based equity strategies to use IBM Watson to turn data into investment insight.

AiPEXAR objectively evaluates and scores a universe of Large and Mid Cap U.S. publicly traded companies in order to find those whose stock prices are poised for growth and rebalances its portfolio monthly by following a 3-step equity selection process. AiPEXAR is 100% composed of US equities selected by the AI at all times and will not invest in cash or other instruments.



HSBC AiPEXAR Resources

These client approved materials provide an in depth overview of the performance and strategy that drives AiPEXAR.

Performance:
Historical & Simulated

The AI Powered US Equity Adjusted Total Return Index would have provided growth through a variety of market environments due in part to a monthly equity selection process intended to adapt to market changes and mitigate potential risks. While real-time calculations began on July 14, 2021, the graph below illustrates how AiPEXAR would have provided long-term positive returns with low volatility.

AiPEXAR comparative performance graph



AiPEXAR

15.83%
compound
annual return


SPX
12.52%
compound
annual return


Key Statistics and Characteristics

Index returns as of
6/30/2021
AI Powered US Equity Adjusted
Total Return Index (TR)
YTD 13.97%
1 Y 36.37%
3 Y 51.17%
5 Y 104.36%
10 Y 334.89%
10 year volatility 17.35%
Bloomberg
Ticker
AiPEXAR Index
Asset Class Equity
Currency USD
Launch Date July 14, 2021
Index Sponsor EquBot, Inc.
Calculation Agent Solactive AG
Adjustment Factor1 5.0% per year

1AiPEXAR Index values shown here, and as calculated and published by Solactive AG, are net of the 5.0% p.a. Adjustment Factor, or decrement.
The graph and table above set forth the hypothetical back-tested performance of the Index from June 30, 2011 through June 30, 2021. See the risk factors and “Use of Simulated Returns” herein.

AiPEXAR Index Strategy



Step 1: Score

Scores for the companies included in the Solactive US Large & Mid Cap Index are calculated based on:

Financial Health Score:
evaluates a company’s fundamentals and key figures.
Management Score:
assesses a company’s management strength and thought leadership.
News & Information Score:

measures a company’s market sentiment, economic, and geopolitical risks.



Step 2: Select

Approximately 250 companies with the highest combined Financial Health, Management, and News and Information Scores are selected for the portfolio.



Step 3. Diversify
& Adjust

Companies are assigned portfolio weights, with the largest weights going to the companies with the highest combined scores, subject to strategic constraints1.

1Constraints include: diversification; market liquidity limits; weight allocation; and caps at 2.6% of the Solactive US 500 Index’s volatility at each monthly rebalance. For more information on the index methodology, please see the AI Powered US Equity Adjusted Total Return Index Guideline published by Solactive AG. Information contained in these Index Guidelines or otherwise available from Solactive is not incorporated by reference in, and should not be considered a part of, this website.

Index Collaborators

IBM Watson

IBM Watson is IBM’s suite of enterprise Artificial Intelligence applications and APIs. IBM Watson represents a new era in computing, where systems understand the world the way humans do: through intuition, learning, and experience. IBM Watson continuously learns, gaining value and knowledge from interactions over time.

EquBot Inc

EquBot, Inc. (“EquBot”), a San Francisco based asset manager, is a member of the IBM Global Entrepreneur Program and developed AiPEXAR to provide investors access to the opportunities that AI can uncover. EquBot was co-founded by the former Director of Engineering at Intel, was the first manager to develop an AI based ETF, and currently manages several funds and separate accounts for institutional investors.

HSBC Bank USA

HSBC is one of the world’s largest banking and financial services companies, an award winning provider of US Structured Products, and is the exclusive licensor of the AI suite of indexes.


Next Steps


Investments in the AiPEXAR are available through HSBC Structured Products. Contact your Financial Professional about what HSBC AiPEXAR investments might help you achieve your financial goals.

Financial Advisors can view the current HSBC offerings linked to AiPEXAR
click here


Financial Advisors not yet registered with HSBC, can register here