First AI fund launched by Nextgen
![image](https://moneymanagement-live.s3-ap-southeast-2.amazonaws.com/s3fs-public/field/image/data%20tech%20fintech%20300.jpg)
![image](https://moneymanagement-live.s3-ap-southeast-2.amazonaws.com/s3fs-public/field/image/data%20tech%20fintech%20300.jpg)
Australia’s first artificial intelligence (AI) fund has been launched by Nextgen Funds Management to invest in companies delivering AI technology.
It would focus on those which addressed environmental, social and industrial challenges globally by investing in a mix of debt and equity in areas such as health and wellbeing, infrastructure, transport and cybersecurity. By 2028, AI was forecast to be worth $315 billion to the Australian economy.
Samuel Mullavey, head of distribution at Nextgen, said: “We believe AI will be the defining technology of our time. It is set for accelerated growth and demand and, as such, we have positioned the fund to take advantage of the exciting investment opportunities unavailable to public markets.
“As a result, there are unprecedented levels of global activity and investment in AI. In recent times we have seen a total of $86 billion dedicated to AI programs and activities from 14 of the world’s most advanced economies. Locally the Australian technology industry will require up to 161,000 new expert AI professionals by 2030,” he said.
“In many cases, the technology is already available, but the challenge many smaller AI firms face is commercialising ideas into a viable product or service. This as a major opportunity to leverage our strong partnerships, experience, and networks, and provide the expert support required to navigate this tricky stage of development.”
Recommended for you
Australian and New Zealand sustainable funds saw outflows of more than $1.2 billion in the second quarter of 2024, according to Morningstar, with active strategies accounting for the majority.
Maple-Brown Abbott has finalised an agreement to be acquired by a rival fund manager to create a firm with $18.6 billion in assets under management, just two months after its former CEO exited to lead Magellan.
Following a strategic review, Platinum has announced it will merge its two listed investment companies with two of its quoted managed hedge funds.
With potential US interest rate cuts on the horizon, Income Asset Management believes now is an ideal time to be investing into the corporate bond market.