Swiss Shariah equity fund fully run by AI tool

With AI tools becoming more commonplace in recent years, there has been anticipation that the rapid analysis of exponentially higher number of data points with finessed computing power would produce better fund management returns.

This is the premise of Zurich-based Smart Wealth Asset Management’s SW Global Equity Plus AI Fund – which focuses on global blue-chip equities that are UCITS compliant and Shariah compatible.

Founder CEO Miro Mitev told IFN Investor this fund, launched in July 2025, has its entire investment process – from forecasting and asset selection to tactical allocation and risk management – handled by the AI model with a target annualized return of between 15% and 17%.

While decent, this figure is not significantly higher than returns from human-managed funds or even passive index-linked offerings. Other firms with AI-powered funds – like Arabesque and Invesense – have also shown comparable returns (see tables below).

Table 1: Arabesque conventional and Islamic AI funds’ annualized returns at the 30^th September

Source: Arabesque Asset Management

Table 2: Invesense AI Focus Fund monthly returns (31^st March 2025 inception)

Source: Invesense | *Benchmark = MSCI USA Islamic Index

For the Swiss fund, Miro said its AI tool targets 16% volatility – which results in portfolio optimization, rather than riding out instabilities – to provide more stable risk-adjusted returns and protect investors’ capital during market shocks.

Stating this approach offers consistency and resilience, “it is why our clients have tended to be single and multi-family offices as well as pension funds and insurance companies that seek growth with stringent risk management”.

On why the Swiss firm launched a Shariah compliant fund, Miro said many investors are increasingly prioritizing ethical and responsible investing – this offering expands its market reach to serve faith-based investors who historically had fewer options.

“Since the launch of the fund, several highly successful family offices from the Middle East, Europe, Asia and Australia have invested, pointing to growing recognition of Shariah compliant, AI-driven equity exposure.”

Miro dismissed the argument that Shariah screening naturally narrows the investable universe as the AI model already has an inherent limit by focusing only on companies that have been listed for at least two decades.

“Our strategy isn’t purely back-tested. Our AI model has been live and delivering results for over 20 years across multiple market cycles. That real-world track record provides strong validation beyond simulations.”

This fund uses the latest iteration of what Miro claimed would be among the world’s first AI-based financial products – originally developed in 2001 at Siemens and refined over the years, which he then obtained full rights to with the founding of the Swiss asset manager in 2016.

Looking forward, the firm is ready to expand beyond its current focus on delivering risk-adjusted returns with Shariah compliant equities as it anticipates there may be investor demand for multi-asset strategies or themes such as climate tech or healthcare.