On June 1, the news that AI independently managed private equity products flooded the investment circle.
Private equity fund Ultimate Investments announced that an AI-based robot will independently manage a fund.
AI robots will independently manage funds and speculate in stocks, does it mean that the era of real robo-advisory is coming? Will the fund manager lose his job?
Photo courtesy of Visual China
AI "stock trading", independently managed funds
On the afternoon of June 1, Zhishan Investment announced that it intends to arrange four researchers and an artificial intelligence-based robot (tentatively named "Cybertron") to independently manage five different private equity funds.
It is reported that the fund managed by Cybertron is so far as Zhishan No. 1, which is also the first AI fund manager in the domestic market.
The private placement said that AI fund manager Cybertron and the current quantitative institutions programmatic trading has three differences, the first is not to use quantitative factors, the second is not to rely on financial logic, and the third is based on deep learning to do the investment. From the effect point of view, compared with subjective management, under the condition that the return remains unchanged, the AI reduces the drawdown by at least 10 percentage points, and the effect is obvious.
One stone stirs up a thousand waves. Some netizens questioned that fund managers need a series of qualifications and certificates such as securities and fund qualification certificates, and how can AI robots obtain these qualifications? In this regard, some lawyers explained that the current regulations of relevant industries in the mainland are set up for people, and there are no regulations that clarify what kind of access and restrictions AI robots need to engage in fund management.
Before AI independently managed funds, some platforms had already allowed them to "speculate in stocks". Sun Meng, senior vice president of the quantitative investment department of Huaxia Fund, said that the funds he manages such as Huaxia Zhisheng Pioneer, Huaxia Zhisheng Value Growth and Huaxia CSI 500 Index Enhanced all use AI robot deep learning for stock selection and investment.
The financial industry has become one of the important selection directions for AI robots to "cross-border". Previously, Gu Jia, chief analyst of China Merchants Securities Media, once said that China Merchants Securities has created a digital avatar for him, and his virtual people will soon come out "hundreds" for one-on-one communication and road shows. It is reported that the AI virtual human can achieve all-weather "business" and appear in roadshows, conference calls and other scenarios at the same time.
Yu Jianing, executive director of the Metaverse Industry Committee of the China Mobile Communications Association, believes that AI digital human analysts can use powerful data analysis capabilities to provide more comprehensive and accurate data and analysis results, so that human analysts can better understand the market and investment opportunities.
Photo courtesy of Visual China
Is the fund manager's job insured?
When the news broke, some investors talked about it. "In this way, the fund manager is going to lose his job." "AI stock trading earns electricity bills, analysts, research reporters, and fund managers are all out of class."
Ma Cheng, chairman of Shenzhen Juze Investment, believes that AI-based robots will independently manage private equity fund products will become a reality. The logic behind it is mainly that there will be many investment models in investment, such as the quantitative fund strategy currently running in the market will be a typical investment model, and the success of this investment model is often based on finding patterns from a large amount of trading data in the past. The biggest advantage of artificial intelligence is its powerful computing power, if supplemented by strong past data, it can completely manage private equity fund products independently, and even the final investment results will be better than traditional fund managers.
In this regard, there are also negative opinions in the industry. AI robots have pros and cons to managing funds, and the most likely landing scenario for AI robots in the future is to cooperate with humans and become the second brain of humans, rather than completely replaced.
According to Pan Helin, co-director and researcher of the Digital Economy and Financial Innovation Research Center of Zhejiang University International Business School, "market news is not only public information, but actually some insider information. As a result, AI investment is not perfect. AI doesn't make investment decisions well, and in recent performance, AI has been roughly on par with the overall market return. The wealth effect must be a key factor for investors to flock, but the accuracy of investment is very difficult to determine. ”
A researcher in Shanghai also said: "The stock market itself is complex and uncertain, and is affected by many factors, such as political, economic, social and natural factors. These factors can affect the volatility of the stock market, making AI predictions inaccurate. ”
Lin Jianming, founder of Samoyed Cloud Technology Group, believes that ChatGPT cannot replace the interpersonal relationships and investment experience of investment advisers, nor can it replace investment advisers to provide personalized investment advice to customers according to their unique circumstances.
"AI is more gimmick than substance for fund managers." Sang Tian, a lawyer at Shanghai Dehe Hantong Law Firm, said that AI as an auxiliary decision-making tool can be used by people, but AI cannot bear the legal responsibility that fund managers should bear, no matter what tools are used to form investment decisions, the legal relationship between funds and investors requires the participation of responsible persons, and AI decision-making still needs to be judged and supervised by humans.
Photo courtesy of Visual China
Is the era of robo-advisors coming?
In the context of the artificial intelligence boom sweeping the world, the topic of AI participating in investment and serving as an investment adviser has earned enough attention. Gao Zhiwei, chief analyst of financial engineering at Guojin Securities, said that investors have used artificial intelligence models such as deep learning and reinforcement learning for quantitative investment.
Gao believes that if models such as ChatGPT are widely used in future investment activities, it may be beneficial to investors and the stock market. Lin Jianming also said that financial institutions have huge imagination in using ChatGPT technology to gradually empower scenarios. Intelligent marketing, intelligent customer service, risk identification, code programming, etc. are all good application directions of ChatGPT.
Xu Liang, chief engineer of OneConnect Artificial Intelligence Research Institute, analyzed that intelligent investment advisory is a professional investment consulting service based on artificial intelligence, and after the application of AI robots such as ChatGPT, it can eliminate human subjective factors, provide more objective suggestions, and continue to evolve and innovate with changes in the market and environment. In the future, ChatGPT can be applied to natural language processing (NLP) and chatbots, predictive analytics, reinforcement learning, blockchain, computer vision and other emerging hot fields, and will have a huge impact on the development of the financial industry.
As Evergreen Investments said in another article on June 2, the true meaning and value of Cybertron lies in the reshaping and integration of the existing Ultimate Good Value Investment system, not mainly in trading. Whether AI-independently managed products that stop at the rush to invest in the best will bring investors the expected returns remains to be verified by time.
Zhang Liya Finish