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By Don Steinbrugge, founder and CEO at Agecroft Partners, a global hedge fund consulting and marketing firm.
AI is changing many aspects of the investment industry. One area where the impact is already becoming clear is investment manager due diligence questionnaires (DDQs), requests for proposals (RFPs), and the more informal lists of questions investors send to managers.
On the manager's side
Twenty-six years ago, I headed institutional sales for Merrill Lynch Investment Managers (MLIM), now part of BlackRock. At the time, I had a large team of analysts working full-time on nothing but DDQs and RFPs. The frustrating part was that most questions from consultants and investors were similar, but each required a slightly different answer tailored to the way the particular question had been asked. It was also difficult to find previous answers, which were often buried in Word documents scattered across the organization.
This is precisely the kind of workflow AI can improve. It can increase the quality and consistency of responses while reducing the time required to produce them.
The process today can be relatively straightforward. A manager can bring prior DDQs and RFPs, the PPM, ADV, pitchbook, and other approved materials into one centralized location. Historical monthly performance, performance attribution, monthly AUM, client growth, and the breakdown of investors by client type can also be added. The more relevant information the syst...................... To view our full article Click here
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