Asset manager DWS announced today the launch of DWS Concept ESG Arabesque AI Global Equity, a new equity fund with stock selection largely based on the use of artificial intelligence (AI). Developed in partnership with sustainable finance technology provider Arabesque company Arabesque AI, the new fund picks up on the three megatrends that DWS has identified for the coming decade, including low interest rates, sustainability and digitalization.

DWS entered into a strategic partnership with Arabesque AI at the beginning of 2020, and the new fund marks the partners’ first joint product.

Yasin Rosowsky, co-CEO of Arabesque AI, said:

“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.”

According to DWS, the fund combines the interaction of AI and humans, with the AI engine generating a large number of signals every day that indicate the attractiveness of stocks, and DWS’s quantitative investment specialists using these to build a portfolio that is diversified regionally and across sectors.

Manfred Bauer, Head of the Product Division at DWS, said:

“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.”

The new fund will be comprised of between 60 and 70 stocks from the MSCI World universe, and will pursue a total return approach, taking ESG criteria into account.