When one instructs a painter to draw a portrait (no matter how detailed the instructions may be) the painter will always have discretion in executing the final product. Likewise, in investment funds, the investment manager is instructed to invest according to various rules and timeframes which are detailed in the investment strategy as approved by the competent financial regulator, but there will still remain investment discretion on how the investment strategy is executed. This discretion is normally based on a number of statistically orientated formulas which analyses quantitative and qualitative data. Artificial Intelligence (“AI”) is being increasingly used in these…
Mario Mizzi8th February 2023