AI Enhanced Index
Blending Passive Stability with Active Intelligence
The AlisAlpha AI Enhanced Index is a rules-based, long-only strategy that systematically adjusts benchmark exposure, using proprietary AI signals to make active, risk-aware bets designed to improve performance. It was created for institutional investors who seek predictable index performance but find that pure passive strategies are unable to adapt to short-term market shifts.
By combining the familiarity of a benchmark with dynamic, AI-driven adjustments, the strategy offers a sophisticated alternative designed to consistently achieve strategic alpha generation.
Objective
Offer benchmark-centric exposure (e.g., S&P 500) with strategic AI-driven tilts to improve performance.
Risk Approach
Three clearly defined risk tiers (Low, Default, High) allow investors to select their preferred level of deviation from the benchmark.
Rebalancing Frequency
Monthly adjustments based on daily signals, ensuring optimal alignment with current market conditions.
Transparency and Control
Clearly defined multipliers and strict position limits provide predictable tracking error, maintaining portfolio stability and risk control.
A Disciplined, Rules-Based Process
Our strategy translates daily AI insights into benchmark outperformance through a systematic and repeatable process.
AI Signal Generation:
A proprietary deep learning model analyzes and scores every US 500 stock daily, sorting them into deciles based on expected performance. The model retrains quarterly to adapt to changing market conditions.
Portfolio Construction:
Based on AI-driven decile rankings, stocks are strategically overweighted (up to 2x their benchmark weight) or underweighted to create measured active positions.
Monthly Rebalancing:
The portfolio of approximately 300 holdings is rebalanced once a month to reflect the latest signals while minimizing turnover and transaction costs.
Proven Performance and Stability
AI Enhanced Index consistently demonstrates strong, risk-managed returns exceeding benchmark performance.
Backtested and out-of-sample results have inherent limitations and may differ from live results due to trading frictions, liquidity, and operational factors. Past performance is not a reliable indicator of future results. For professional/institutional investors only. See methodology/factsheet for fee and cost assumptions.
The AI Enhanced Index strategy is uniquely suited for:
Endowments & Pension Funds
Family Offices
Insurance Funds & Sovereign Wealth Funds
Why Choose AI Enhanced Index?
Strategic AI Advantage
Proprietary signals consistently optimised through extensive validation.
Institutional Discipline
Built upon Rezco's rigorous compliance and operational standards.
Transparency and Predictability
Clear rules-based methodology provides peace of mind and control.
Risk Control
Explicit risk tiers and tracking error caps ensure disciplined, responsible portfolio management.
Your Next Step to Strategic Alpha
Experience how the AlisAlpha Enhanced Index can provide your institution with core stability enhanced by strategic, AI-driven returns.