HSBC Launches AI-Powered Equity Index Using AWS

Global investment strategy regularly rebalances portfolio with the aim of providing capital appreciation, inflation protection and stable fixed income returns

HSBC today announced the launch of the HSBC AI Global Tactical Index (HSBC AIGT), which will use machine learning powered by Amazon Web Services, Inc. (AWS) in conjunction with equity investing. The HSBC AIGT index was developed by HSBC and leverages the artificial intelligence (AI) capabilities of AWS to carry out an AI-based index investment process.

HSBC AIGT uses AWS AI services to analyze and learn from data thousands of times faster than humans, enabling the index to automatically adapt its approach as market dynamics change and new information becomes available.

Ibexis Life & Annuity Insurance Company (Ibexis), a provider of retirement savings products, is the exclusive provider of HSBC AIGT in its suite of fixed indexed annuities. Applying what has been learned, HSBC AIGT employs a rules-based investment strategy that uses advanced techniques in AI and machine learning to opportunistically invest across a global portfolio of assets. HSBC AIGT rebalances its portfolio weekly, and, to manage short-term volatility, reallocates among the chosen portfolio and cash on a daily basis. HSBC AIGT dynamically shifts in and out of global equities, gold and bonds in an attempt to provide a combination of equity capital appreciation, inflation protection, and stable fixed income returns.

“Successful investment strategies of the future require the ability to analyze and learn from the growing amount of data, and react quickly to changing market conditions,” said Dave Odenath, Global Head of Quantitative Investment Solutions at HSBC Global Banking and Markets. “HSBC AIGT puts the power of an adaptive AI system fuelled by data into a global tactical allocation framework, creating a systematic investment strategy that is designed to keep up with and thrive in increasingly complex markets.”

“Using AWS artificial intelligence and machine learning capabilities for the HSBC AI Global Tactical Index, HSBC is meeting the industry’s evolving needs as it continues to develop innovative solutions for the investment community,” said Scott Mullins, Managing Director, Worldwide Financial Services Business Development at AWS. “We are excited to collaborate with HSBC across their machine learning initiatives powered by AWS.”

Nate Gemmiti, CEO & President of Ibexis, said, “Ibexis is excited to launch its fixed indexed annuity with a crediting strategy linked to the HSBC AIGT. We seek to offer very attractive annuity products for individuals that desire financial security during retirement. We believe offering individuals access to the HSBC AIGT strategy helps fulfil this goal.”

Click here to learn more about equity index products powered by AI.

About HSBC

HSBC USA Inc. ("HUSI") is a Maryland corporation and its principal business is to act as a holding company for its subsidiaries including HSBC Bank USA, N.A. Through HSBC Bank USA, N.A. and its subsidiaries, HUSI offers a full range of traditional banking products and services to individuals, including high net worth individuals, small businesses, corporations, institutions and governments. HSBC USA Inc. is a wholly-owned subsidiary of HSBC North America Holdings Inc.

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,967bn at 31 December 2022, HSBC is one of the world’s largest banking and financial services organisations.

Ibexis Life & Annuity Insurance Company. Founded in 1937, Ibexis offers fixed annuities to help clients protect their financial future and prepare for retirement. Ibexis’ fixed annuities can help individuals accumulate interest without risk of losing principal and provide guaranteed income during retirement. AM Best assigns an A- Financial Strength Rating (4^th highest of 13). Ibexis' full ratings report may be viewed at www.ambest.com. All guarantees are backed by the claims paying ability of Ibexis Life & Annuity Insurance Company, 221 Bolivar Street, Jefferson City, MO 65101. Product availability and features may vary by state.

HSBC U.S. Global Markets Sales and Trading Disclaimer

This material has been prepared by a member of the sales and trading department of HSBC Securities (USA) Inc. (“HSI”), HSBC Bank USA, N.A. (“HBUS”), and/or their affiliates (individually and collectively, “HSBC”). This material has not been prepared by HSBC’s research department. This material has been approved for publication in the United States by HSI, which is regulated by The Financial Industry Regulatory Authority and the Securities Exchange Commission, and/or HBUS, which is regulated by the Securities and Exchange Commission, the Office of the Comptroller of the Currency, the U.S. Commodity Futures Trading Commission and the National Futures Association, as a provisionally registered swap dealer and registered security-based swap dealer. This material is intended for your sole use and is not for general distribution; you may not distribute it further without the consent of HSBC. This material is for informational purposes only and does not constitute an offer or commitment, or a solicitation of an offer or commitment, to enter into or conclude any transaction or to purchase or sell any financial instrument.

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