Future Finance
Investing 2.0: How Bots Are Forging the Next Generation of Funds
- Firms create indexes and funds with machines for bigger fees
- AI-aided offerings flow from BlackRock, Goldman, State Street
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Kensho Technologies was focused on analyzing North Korean missile launches, earthquakes and elections when John van Moyland joined in 2014. The Central Intelligence Agency was among its early backers.
Now, its focus has shifted to finance. S&P Global Inc. bought the firm last year and the artificial-intelligence startup lasered in on another technical challenge: developing the next generation of indexed funds. According to van Moyland, machines are ready to design better indexes to underpin investment vehicles passively managing $7.3 trillion in the U.S.