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The asset management industry is moving at the same pace as the planet as a whole.
Increased digitization and the use of digital implements is taking hold. Artificial intelligence is moving its acces into the financial industry and one of the debates is whether it can end up make away with the figure of the manager and whether, in addition, it is the key factor on which indexed management – an investment strategy based on replicating indexes – is focused.
Business Insider Spain has alone interviewed Unai Ansejo, CEO of Indexa Capital, a fintech focused on indexed management and with a germinating capacity of purchasers, to discuss this series of questions about the future of the investment scheme, as well as probing into the expansion of its straddle of makes with the proposed establishment of occupational pension plans.
Focusing on certain advantages of artificial intelligence when it comes to managing the assets in which to invest Ansejo expounds that from his professional know-how he realizes that long-term savings is not about squandering an algorithm that defeats others, but instead about greatly reducing costs, diversifying and being invested in different areas.
“I’m skeptical of these things, ” he pertains about nonparametrics. “I have analyzed numerous quantitative investment funds for more than 20 times and they ever seemed very good, but then there came a epoch when something happened or there was any problem, ” he adds.
Therefore, as he clarifies, in the end, artificial intelligence is a very broad perception, but they would still be algorithms in which you create a series of entry points to then find an exit.
“What happens is that the process by which inputs become outputs is a black box: you don’t know, ” he says.
At Indexa Capital, they don’t use artificial intelligence to build investment models but instead focus on criteria they think are tolerable for how portfolios should be constructed over the long term: diversify a great deal, reducing costs, incorporate the effect of direct taxes into portfolio construction. “In my view, AI as such is not the best way to obtain long-term performance, ” he notes.
Ansejo assures, nonetheless, that in the fintech they use technology a lot: “Our goal is that half of our squad are technical charts such as technologists, advisers or makes and we use engineering for what needs to be done: automating manages where a person does not contribute any value”.
For example, something that automates, as he associates, is that, once the client’s portfolio is configured, based on their risk profile, they apply an algorithm that is public to guide how the allocation of their investors should be. “When you already have a model portfolio the daily management of your portfolio, or the request for a withdrawal to find the best fund in which there is a lower taxation jolt can be automated, ” he explains.
The Indexa Capital CEO is said that you can’t automate portfolio construction.”You can’t ask a computer or a machine what to invest in because there are many constants to take into account, ” he says.
In this style, Ansejo reveals that to build their portfolios they carry out a quarterly review in which they try to see, among other things, if there is a new asset class in which they can invest cheaply and efficiently.
The brand-new wager to attract more patrons: occupational pension plans.
On the other hand, Indexa Capital has expanded its array of indexed products by incorporating occupational pension plans. “We do it with indexing because we think it’s the best way to maximize your alternatives to monetize a portfolio over the long term, ” he says. “What we have is 32,000 patrons for whom this overture drives, ” he adds.
Along these lines, Ansejo says that they have had pension plans for four years and with a very clear vocation: that they should be indexed because they are cheaper. However, they learnt that, apart from individual programmes, in employment contrives( where it is the company that creates a payment plan and lends for the worker) the solutions available were once again particularly analogical. “Everything with a great deal of newspaper and regulatory report, ” he describes.
On the other hand, they were usually active control, oriented towards SMEs and high costs. ” So we decided to launch it to make it easier for an SME to have a plan quickly and online, and we did so by incorporating another aspect, which is the life cycle, ” he says.
Ansejo confirms that they incorporated a large dose of innovation: that it could be done digitally, low costs and life cycle. “So, the response we are having is very good, although the amount we have is small, it is normal because in the end, when you create an employment plan you are contributing little by little to your employees, ” he says.
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