Fidelity looks to AI as the future of portfolio management and asset selection
- London-based Fidelity International has invested heavily in new technology
- Artificial intelligence can help save costs and improve asset management, says Fidelity International’s Luc Froehlich
Fidelity International is betting big on artificial intelligence as the future of fund management in the belief that the new technology will give asset managers the edge in constructing and managing portfolios, according to a senior executive.
Luc Froehlich, Asian fixed income investment director at Fidelity International, said that his firm was at the forefront of a transformation that would see an enhanced role for machines in running pension funds, actively managed equity funds and other investment products.
Fidelity fund managers are already using natural language processing in asset selection, Froehlich said.
Natural language processing is an area of AI which deals with how to program computers to process and analyse large amounts of data that comes in the form of written and spoken human language. Using machine learning, natural language processing helps uncover insights and relationships in unstructured data.
“We have been using natural language processing to build up the investment universe for our portfolios,” Froehlich said.
