Using AI to automate investing – part 3


As safe as houses” has long been a quote referring to the limited risk of failure in the property market, but with an annual return of 10.5%, is it enough with the average individual investor in Australia expecting annual returns of 11.9% above inflation? By contrast, financial professionals say 6.4% is realistic. To achieve lofty returns, individual investors may take on excessive risk.

Now, with optimism returning after the disruption of Covid, more investors are looking to the share market as a logical option to chase higher returns.

The decision to take on additional risk becomes further fraught in today’s ongoing low-interest rate environment where the zero-risk cash option comes with near-zero return. Managing risk for the retirement nest egg becomes a more pointed concern the closer investors get to this important stage of their lives, especially for the increasing number of Australians setting up their own self-managed super funds (SMSFs).

Financial planners report one of the main concerns for SMSF clients today is about managing their level of exposure to volatile global markets.

Taking Control of Your Retirement

Accumulating wealth for retirement is among the biggest motivations for investment. Yet, two-thirds of Australians feel unprepared for retirement. As life expectancy increases and the cost of living goes up, many are not prepared to make ends meet in the longer term.

While compulsory superannuation enables Australian’s to achieve a retirement income that better reflects their pre-retirement income, the extent to which Australia’s renowned pension system meets the financial needs of retirees leaves room for improvement. Comfortable retirement often requires investments with higher yields and steady returns.

As wage growth stagnates, house prices continue to rise and the concentration of wealth among younger generations remains underwhelming, Jaaims makes investing in financial markets the perfect complement or an attractive alternative to residential property. And while one study shows that residential real estate generated slightly better returns than a diversified portfolio of Australian shares over a ten-year period, that portfolio was not powered by non-stop AI optimisation. Jaaims brings that advantage to your portfolio.

Jaaims is one such tool which ranges from a signal service to a professional platform that can help manage and trade a portfolio worth up to $25 million. 

“With the professional package, we pick stocks for you, as well as executing.” Tui Eruera, CEO and Founder says. 

“So that is the fully automated version. And that’s the easiest way for them to get exposure to our algorithm.”

“With Jaaims you can allocate say, 25 per cent of your fund to Jaaims, set up your own broker account and you’ve got complete control of your money at all times.”

“Jaaims does the trading for you and, if another opportunity comes up, obviously you will scale down your allocation – or if you’ve got excess cash that’s not working for you in your SMSF you can scale up your allocation in minutes.”

And what does the future hold for Jaaims and the SMSF sector as a whole?

“AI is going to be a real enabler for the industry and I think you’re going to see more growth in self-managed super funds,” Eruera says. “I actually think there’s going to be sort of a hybrid in the future.”

“There’s an opportunity or gap for people to have half and half – so people will still allocate some of their funds to traditional super funds, but people will now want to have a bit more control.”

He says technology will become even more of an enabler, particularly for socially conscious millennials driving the continued rise of ESG investing.

According to the ATO, 1.1 million of the nation’s breadwinners have made a break from managed funds, building a collective self-managed super fund national nest egg that is now worth more than three-quarters of a trillion dollars.

The AI-Powered Path to Investment Success

Simplicity is the ultimate sophistication. Once Jaaims is plugged into your brokerage account, it automates trade execution, constantly refining your portfolio to maximise returns. Your money never leaves your brokerage account. Jaaims can manage a portfolio of your favourite stocks. Alternatively, you can follow its pre-defined portfolios.

Now returning 26.53%* on their Professional plan’s Smart Portfolio, Jaaims has evolved the traditional investing strategy to include the variance of human emotion through predicting future emotional trends using the power of AI.

With its unique ability to connect to your SMSF, Jaaims empowers you to generate the returns that you need to live well and retire early. Leveraging this institutional-grade quant solution makes reaching your retirement milestone figure achievable. So, whether you are among the 43% of Australians who are saving for a big-ticket item, or you have retirement on your mind, Jaaims will enable you to realise your goals today, tomorrow, and further down the line.

Originally featured in the AFR 12 June 2021

*Jaaims operates various portfolios within our application. Our Flagship Smart Portfolio results shown on this website are net of fees and in AUD. Calculations are based on our monthly Professional subscription using our Smart Portfolio trading all stocks in markets covered by Jaaims with a portfolio of $1m, position size of $10,000 per trade and a broker fee of $9 per trade ($18 completed trade). The calculation is from 1 July 2020 to 31 March 2021 and is a period return. Distributions are reinvested, after ongoing fees and expenses but excluding taxation. Actual performance will vary depending on broker selection, position size and stocks selected by the user. Past performance is not a reliable indicator of future performance and will be subject to investment risk as returns are derived from share markets.
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