20 July 2018
Visit www.avoka.com

Nomura Asset Management trials AI for investment decision making

26 June 2017  |  7627 views  |  0 AI

Japan's Nomura Asset Management (NAM) has tapped artificial intelligence (AI) to quantitatively assess text from news websites and blogs, using the results to help portfolio managers make investment decisions.

Portfolio managers are having to take into account an ever-growing deluge of information from not only analyst reports, but also numerous news sources, industry blogs and social media, to make forecasts and determine the impact on stock prices.

Working with Nomura Research Institute, NAM spent months on a proof-of-concept to see whether natural language processing utilising AI could increase the accuracy of portfolio managers’ investment decision-making.

The firms used AI technology to analyse all the information a portfolio manager would consume and score them into two groups - either positive (indicating that company performance or corporate value is likely to rise) or negative (is unlikely to rise).

First up, a natural language analysis on analyst reports was done to highlight the shifts of investment decisions; for example, a shift from neutral to overweight or from neutral to underweight. The language patterns for 'positive' and 'negative' were then identified and used as training data for AI. Finally, the AI calculated the similarities between the training data and the targeted materials, scoring whether each piece of information was 'positive' or 'negative'.

NAM says that the PoC highlighted that analysis of analyst reports using AI enabled the quantitative assessment of information which portfolio managers usually see as qualitative. In addition, even text information from news websites and blogs could be quantitatively scored and used to boost the ability of portfolio managers to make investment decisions.

The partners now plan to work with clients to create more PoCs and to explore cases where AI can help portfolio managers in their work.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Nomura sets up Indian fintech programme; creates $92 million startup investment fund

Nomura sets up Indian fintech programme; creates $92 million startup investment fund

20 April 2017  |  7155 views  |  0 comments | 6 tweets | 3 linkedin
Millions of jobs at risk in Fourth Industrial Revolution - BofE staff blog

Millions of jobs at risk in Fourth Industrial Revolution - BofE staff blog

01 March 2017  |  8724 views  |  2 comments | 18 tweets | 16 linkedin
RBC hires AI pioneer as advisor to new machine learning lab

RBC hires AI pioneer as advisor to new machine learning lab

19 January 2017  |  8409 views  |  0 comments | 10 tweets | 9 linkedin
Japanese insurer to replace 30% of workers with AI

Japanese insurer to replace 30% of workers with AI

04 January 2017  |  6872 views  |  1 comments | 14 tweets | 9 linkedin
Watson data scientist talks up 'augmented intelligence' for financial services

Watson data scientist talks up 'augmented intelligence' for financial services

08 December 2016  |  22750 views  |  0 comments | 31 tweets | 20 linkedin
Banking in the age of AI

Banking in the age of AI

10 October 2016  |  15826 views  |  1 comments | 48 tweets | 30 linkedin
IBM to acquire Promontory; create AI-driven compliance subsidiary

IBM to acquire Promontory; create AI-driven compliance subsidiary

29 September 2016  |  10177 views  |  0 comments | 15 tweets | 23 linkedin
Japan Exchange and NRI begin blockchain proof-of-concept

Japan Exchange and NRI begin blockchain proof-of-concept

08 April 2016  |  11340 views  |  0 comments | 5 tweets | 10 linkedin
NRI to test application of blockchain in banking

NRI to test application of blockchain in banking

17 December 2015  |  8845 views  |  0 comments | 8 tweets | 12 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit info.nice.comVisit https://secure.vasco.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
12314 views comments | 5 tweets | 7 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
10112 views comments | 5 tweets | 14 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9847 views comments | 6 tweets | 15 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
9679 views comments | 9 tweets | 17 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
9413 views 19 comments | 14 tweets | 30 linkedin

Featured job

Competitive base, double ote, benefits
New York City, NY - USA

Find your next job