Bridgewise, a financial research intelligence platform for global securities, has revealed a new fund analysis solution that aims to provide deeper levels of detail into funds and their underlying assets.
Powered by AI, including machine learning and advanced language models, Bridgewise will enable deep analysis of fund holdings, past performance, and fee structure, while “providing extensive coverage for almost 90% of funds on the market.”
This enables institutional investors “more accuracy for investments, and overcomes a long-standing challenge of a lack of data to analyze the risk and performance of a fund of which the underlying holdings are unknown.”
As part of deepening the company’s network and credentials, Bridgewise has also “appointed Deborah Fuhr, managing partner and founder of ETFGI, to its advisory board.”
She brings close to 30 years’ experience in exchange-traded funds (ETFs) and investment strategies, where her “insights and strategic vision will support Bridgewise’s continuous innovation and expansion.”
ETFs, mutual funds, and other similar vehicles have become some of the most popular choices for investors, with ETFs seeing “a 24% annual growth in 2023 globally.”
In APAC, the ETF industry also reached new milestones “in February 2024 with $846.38 billion of investments, surpassing records set in 2023.”
However, due to the sheer number of assets “held in funds, less than 20% of global securities are covered by professional analysts.”
The lack of comprehensive analyses “makes it challenging for investors to make proper, informed decisions.”
Bridgewise’s latest Fund Analysis solution “is powered by dual AI technologies – machine learning analysis of the global equities it covers and a custom Micro Language Model (MLM).”
It is able to break down funds “into their constituent assets and provide a detailed analysis of each one, as well as buy/sell recommendations.”
Furthermore, Bridgewise analysis can “be provided in any language, helping to close barriers for global funds.”
This is particularly important “in Asia, where diverse company structures and language barriers have deterred foreign investors.”
Gaby Diamant, Co-Founder and CEO at Bridgewise, says:
“Until now, fund analysts have faced a daunting challenge. There is no way for a human to provide a detailed fundamental analysis on each and every asset in popular funds, especially when some funds are composed of thousands of individual stocks. The time it would take to complete such an analysis could stretch to a full year or more. Our AI technologies not only allow for an unprecedented level of depth of fund analysis, but also nearly universal coverage of funds, each one with the same level of detailed analysis along with buy/sell recommendations for the individual stocks in the fund. This emphasizes the potential for AI to bridge the gap between available data and insightful analysis, enabling a more thorough understanding of market dynamics and investment opportunities.”
Deborah Fuhr, managing partner and founder of ETFGI, says:
“ETFs are increasingly gaining popularity with retail investors and financial advisors around the world providing simple, liquid, transparent, cost efficient, diversified exposure to global markets, regions, countries, themes. At the end of May our research reported the global ETFs industry has had 60 months or 5 years of consecutive monthly net inflows and the assets invested in the global ETFs industry reached a record of $12.89 trillion. Bridgewise is developing a solution to fill a growing need for detailed information about mutual funds and ETFs to allow retail investors to make fully informed decisions.”
For investors, the new fund analysis solution will “provide a unique experience featuring interactive elements, contextual ratings, and other features designed to help them find investment opportunities that are completely aligned with their goals.”
Founded in 2019, Bridgewise aims to bridge “the knowledge gap in the investment world and democratize access to financial market information, providing easy to understand, comprehensive equity research that was previously exclusively available only to major financial institutions.”