Artificial Intelligence and Large Language Models (LLMs) are adapted by society on an increasingly larger scale. Consequentially, they also make their way into the investment industry. This article discusses LLMs and their application in investments.
If you were in AI in Financial Services in 2023 it was a wild ride. Whereas AI was a tough sell in previous years; executives didn’t see the value, and readily cited explainability, or untested outcomes as a reason not to pursue the technology. Machine learning was quietly being used by quants and hedge funds, but mainstream financial services were asleep at the wheel. Then, OpenAI launched ChatGPT, and the world literally changed overnight, suddenly budgets were open, and expectations were sky high!
When OpenAI released ChatGPT in November 2022 it created a wave of excitement around artificial intelligence (AI) among the general public, media, and across industries worldwide. Such generative AI models (also called generative large language models or LLM) have sparked a new race in the tech world regarding who has the best AI offering. On one hand, the Microsoft-OpenAI partnership was leading the way with incorporating generative AI into many applications, while other big firms like Google were stepping up with their own AI tech in the form of BARD. More recently, open-source versions of generative AI such as Meta’s Llama are surging in popularity, because they enable end-users to finetune generative AIs for their own specific applications without the massive cost and data required to train a generative AI from scratch.
In the dynamic domain of investment management, a discernible paradigm shift is underway, compelling practitioners to reassess traditional approaches within an evolving landscape. Central to this evolution are dynamics that extend beyond customary metrics, prompting investment managers to synthesize considerations at the intersection of technological advancement and ethical responsibility. Against the backdrop of market adaptability to transformative forces, astute managers find themselves positioned at a juncture where exploration of emerging technologies converges with a conscientious appraisal of broader societal and environment imperatives.
Mensen vormen de kern van elke economie. Hun gedrag als consumenten en werknemers is economisch veel relevanter dan hun aantal of leeftijd. Dat is het paradigma van Amlan Roy, in zijn boek uit 2021: “Demographics Unravelled: How Demographics Affect and Influence Every Aspect of Economics, Finance and Policy”.
SUSTAINABLE INVESTING AND WATER RISKS
In dit artikel leest u waarom de transitie versnelling nodig heeft en hoe dit kan worden bewerkstelligd.
We had the pleasure to speak with Alex Edmans, Professor of Finance at the London Business School. We talked about ESG and its various shortcomings. Prof. Edmans makes the case to focus more on long-term value creation instead. We discussed various drivers of long-term value, and also to what extent these drivers have overlap with ESG. The conversation concludes with recommendations for CFA charter holders.
Eind dit jaar promoveert Ralph Verhoeks aan de School of Business and Economics van de Vrije Universiteit op zijn proefschrift ‘Limited Attention, Uncertainty, and Asset Price Dynamics’. In dit interview licht hij de belangrijkste conclusies toe en gaat hij in op de relevantie voor de beleggingspraktijk.
Investors have increased attention to sustainable investment in the past decade. The Global Sustainable Investment Review 2020 shows that more than USD 35 trillion are invested in sustainable assets globally. According to the report, sustainably managed assets have grown 55% relative to 2016. The high allocation toward sustainable investments suggests that investors have increasing preference for sustainable assets.
Het boek van psycholoog Daniel Crosby, een autoriteit op het gebied van gedragseconomie, is nu ook beschikbaar in het Nederlands, dankzij het vertaalwerk van Erik Aalbers en Robert van Beek. Beiden zijn commissieleden van de CFA Society Netherlands commissie Behavioral Economics.
Geschiedenis is een fascinerend onderwerp omdat het verdieping en reflectie biedt op het heden. In ons vak komt geschiedenis vaak ter sprake: analyses van historische gebeurtenissen bieden enig houvast in de beoordeling van de huidige situatie. Die houvast kan je als belegger weer kwijtraken door de twee tegenstrijdige adviezen: ‘history rhymes but never repeats’ tegenover het niet mogen noemen van ‘this time is different’. Gelukkig herhaalt de geschiedenis zich nooit exact (al lijkt het er soms wel op).
EEN VINGEROEFENING OM IMPACT ONDERDEEL TE MAKEN VAN PORTEFEUILLE OPTIMALISATIE