Could investment managers be replaced by AI? Is it time to become a plumber?

On a recent marketing trip, our CEO was asked whether, instead of investing in our fund, one could simply get artificial intelligence (AI) to do what we do. When we meet with new or potential clients, we try to describe what we do in a clear and simple manner. It goes something like this: we own around 40 to 50 of the highest-quality large-cap equity names in the UK. Our tilt is towards quality rather than sector. Then, when we perceive the risk–reward balance to be unfavourable, we fully hedge the value of our equity portfolio. Our aim is to improve long-term returns by reducing ris...