Many IFA firms are struggling to find a use case for AI in the office. An extraordinary resource is found in FT comments, where people with decades of experience contribute fund management tips. Several requested the FT run a “comments only” articles, because such a wealth of knowledge from all around the world is displayed in FT comments. So here is just one recent blog entry:
I have found a use-case for AI … as an investor I want to understand the correlation of returns between my constituent retirement funds so that I can de-risk as necessary …
To this end, I
- downloaded the “fund factsheets” pdfs for my pension fund
- loaded them into Google NotebookLM as notebook
- asked it to extract a table of each funds performance for the past three years
- Saved that into Excel as .csv file
- Uploaded that into Google Colab
- Ran a python script to derive the “correlation matrix”
- Ran another script to derive the “clustered correlation heat map”
So using, “free tools” I’m able to look t any imbalance in the portfolio … (as you can gather, I am quite pleased with myself)
AI is setting the IFA industry on fire. And BAT are now able to run due diligence on AI only.