European banking giant BNP Paribas announced that it has launched the BNP Paribas Cross Asset Trend and AI Index in Brazil in partnership with AI-driven investment solutions company QuantumStreet AI.
The newly launched index marries traditional trend-based investment strategies with advanced AI technology provided by QuantumStreet AI, utilizing trend-following signals to detect investment opportunities that might otherwise go unnoticed.
This innovative approach aims to optimize asset allocation across a broad spectrum of global asset classes by integrating historical data and AI-driven forward-looking indicators, according to the announcement.
The core AI technology of the index is powered by IBM’s watsonx, forming the backbone of QuantumStreet AI’s generative AI platform.
BNP Paribas’ award-winning indexing capabilities are complemented by QuantumStreet AI’s sophisticated machine learning models.
The Cross Asset Trend and AI Index encompasses a diverse range of markets, including equities, fixed income, and commodities in major regions such as the U.S., Europe, and Japan.
This comprehensive tool is designed to underpin the creation of global structured products for BNP Paribas’ clientele, offering a novel method for accessing and capitalizing on emerging market trends.
In Brazil, the index is available through XP, a leading technological platform and financial service provider, which facilitates access to innovative financial products for investors.
Adil El Batji, Head of Global Equities, Americas at BNP Paribas, emphasized the significance of the partnership, stating, “Our collaboration with QuantumStreet AI underscores our commitment to innovation and to developing superior investment strategies. This venture combines the expertise of two industry titans to deliver advanced quantitative investment solutions that optimize portfolio performance through data-driven insights.”
Chris Natividad and Subhra Tripathy, Principals at QuantumStreet AI, expressed enthusiasm about the partnership, highlighting the importance of systematic, AI-driven investment strategies in achieving consistent returns. He said:
It is ever so important to identify and harness consistent sources of return within a systematic framework, and AI driven approaches provide a solid basis for that. We look forward to strengthening our relationship and serving the bank’s global client base.
Raj Datta, Vice President, ISV and AI Partnerships at IBM, also commented on the collaboration, noting, “Working with QuantumStreet AI on implementing watsonx-driven solutions paves the way for rapid innovation and builds on trusted AI technologies.”
Victor Vallim, Head of Structured Note Distribution and Partner at XP, commented on the integration of the new index into their offerings. He said:
The BNP Paribas Cross Asset Trend and AI Index integrates innovative capabilities into a single product, optimized for accessibility through XP’s Structured Notes. This innovative product offers potential for high returns or elevated leverage, tailored to meet diverse investor needs across our platform.