REITS and Real Assets: Building AI Manager
London, 2 August - Kania Advisors, London-based research and advisory firm focused exclusively on institutional real assets allocations and investment programmes is expanding its analytics suite to combine the firm’s sector specific factor-based solutions with AI methods to include forward-looking information flow. The combined analytical solutions will form a separate product and will not affect the current factor-based analytics and methodology that are used for the firm’s listed and unlisted multi-factor alternative beta indices.
Witold Witkiewicz, Founder, comments, “Expanding sophistication of our analytical process and integrating AI methods is a natural development. Over the past two-and-a-half years we have proven that our differentiating approach to factor investing, being focused on factors specifically relevant to real estate securities and other listed real assets, has delivered attractive outperformance both compared to actively managed products as well as other alternative beta indices in the sector based on general equity markets factors.
Of course, factor-based processes are based purely on historical, known information flow, and we have shown that this approach itself, based on specific knowledge, can deliver strong performance and consistent alpha, as it has throughout this period. We are confident that using AI methods in a controlled way and structured specifically to what we want to capture, similar to what we have done for our factor-based process, will allow us to also capture the forward-looking information flow that we are interested in and that is available. This is the type of information that fundamental approaches incorporate when forming expectations. However, we are only interested in a subset of that information and only what can be robustly quantified. We believe the intersection of the two approaches will improve the quantamental process that clients can utilize for analysis, idea generation and risk management.
As our proprietary multi-factor indices already take into account portfolio construction aspects and provide full and consistent alpha generation potential, the combination with forward-looking information used in a structured way will provide a complete “quantamental manager” tailored for listed real assets and delivered as a SaaS solution.”
For information about our services, please contact info@kaniaadvisors.com
About Kania Advisors
Kania Advisors is an independent research and advisory firm focused exclusively on institutional real assets allocations and investment programmes. We provide advice and solutions to improve outcomes in real assets investment programmes. We conduct detailed industry research and custom studies typically focused on quantitative analysis and provide insights which form a critical part of a client's decision process.