Princeton Fund Advisors, LLC, a wholly owned subsidiary of Mount Yale Capital Group, has announced in a press release the launch of two new Alpha Intelligent funds based on growth or value. The Alpha Intelligent Large Cap Value ETF (AILV) and the Alpha Intelligent Large Cap Growth ETF (AILG) are both actively managed funds that utilize manager research along with big data analytics and machine learning.
“We believe our investment research, combined with the power of ensemble methods, a machine learning technique used in applications such as Netflix® and Google Maps™ will enable our clients to participate today in what we believe is the future of active investment management,” states Greg Anderson, president of Mount Yale, in the press release. “While introducing clients to this investment strategy, our response has been extremely positive.”
Both funds are based on the Ensemble Active Management (EAM) system, which uses artificial intelligence combined with predictive analytics that have been used in other industries to identify securities for inclusion in each fund. Alpha Intelligent has been available as SMAs and is now crossing over into the ETF wrapper to offer investors access to AI strategies in the first ETFs to launch utilizing EAM.
“Our AI Strategies are designed to bring an edge to actively managed portfolios, and we are pleased to be at the forefront of what we consider a groundbreaking approach to investing,” according to John Sabre, CEO of Mount Yale.
AILV invests primarily in large-cap companies that are priced as value stocks within the market cap ranges of the Russell 1000 Value Index by using alpha strategy, big data analytics, and machine learning to identify companies with high conviction positions. Securities are screened based on risk and return metrics such as historical performance, Sharpe ratios, upside and downside capture ratios, and performance drawdown.
AILG invests primarily in large-cap companies that focus on growth potential within the market cap range of the Russell 1000 Growth Index. The fund combines alpha strategy with big data analytics and machine learning to create a portfolio of high conviction positions made up of large-cap growth securities that are anticipated to create both substantial and sustainable positive cash flow while exceeding the performance of peers within their industry.
Both funds are actively managed and carry expense ratios of 0.85%.
“Traditional active management has suffered more than $1 trillion in outflows over the past five years for a reason, and our clients are very interested in seeing a new approach to active management,” stated Paul Prentice, senior vice president for Enterprise Solutions at Mount Yale.
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