Jean-Francois Hirschel, Founder & CEO, of H-Ideas shares his thoughts on whether ChatGPT will replace fund selectors, a topic that will be debated at a panel discussion that he will moderate at FundForum.
With over 130 000 public investment funds globally, the complexity of fund selection is immense—for both investors and the professionals guiding them. Could Generative AI (GenAI) step in to simplify this process?
GenAI excels at processing vast amounts of data systematically and consistently, a core challenge in fund selection. If machines can take over this role, it could lower portfolio implementation costs. In turn, these savings might be passed on to investors as lower fees—potentially compounding into greater retirement wealth.
But maybe this is not so simple.
Fund due diligence involves much more than performance metrics. It starts with understanding investment philosophy, process, and portfolio construction. Then comes operational due diligence—evaluating how robust and well-organized a fund manager is at the corporate level. ESG (Environmental, Social, and Governance) criteria are increasingly part of the review, and some selectors now assess company culture and team dynamics.
Can GenAI navigate all these layers equally well? How does GenAI compete with human experience? To what extent have such capabilities been tested and by whom? How do we measure the quality of GenAI recommendations—and is there enough track record to do this?
Ultimately, fund selection isn’t just about information; it’s about interpretation, context, and investor fit. Whether human or machine, the hardest question remains: is this fund right for this investor?
