Psagot Investment House is Producing Wins for Clients with AI

Over the last few years, the global economy has faced numerous problems from a global pandemic that disrupted workers and supply chains to rampant inflation to an energy crisis as a result of the conflict in Ukraine. With a high probability of a global recession in 2023, investment firms will be under immense pressure to perform for their clients.

Tel Aviv-based Psagot Investment House, Ltd. is preparing their team to support their investment advisor clients and tackle any challenge this new economic environment throws at them. CEO of Psagot Mutual Funds, Eyal Goren, pointed out that there are a few key disruptions that come from market turmoil.

First, market volatility can create panic and concern for financial clients. During this time, Goren expects investment advisors across banks, investment houses, and family offices to be inundated with calls from clients who have questions or want reassurance that their investments are safe or well-protected. Unfortunately, this takes investment advisors away from a critical part of their role – finding and analyzing potential investments.

Also, market downturns are great times to find golden opportunities for clients. The challenge is the sheer volume of potential stocks, funds, or other investments that need to be analyzed. The average investment advisors can’t possibly perform a comprehensive fundamental analysis of hundreds of different investments. While a lot of great deals will emerge, some are bound to be missed.

New Investment Strategies with AI

With these challenges in mind, Goren saw an opportunity to better position his unit. He decided to partner with one of the leading AI-powered equity analysis companies, BridgeWise (formerly Deshe Analytics). BridgeWise’s AI platform has the capability to solve many of the concerns that Goren’s clients are expected to face. The two company’s spent weeks collaborating on ways to enhance Psagot’s ability to move quickly in the market and deliver results for their clients.

• Sector Segmentation – On of the main focuses for Psagot Mutual Funds was pursuing a strategy of creating mutual fund products that are focused at the sector level. With the help of BridgeWise’s AI platform, the firm now has the capability to quickly segment investments by sector and create new products for clients looking to get exposure across entire industries.
• Faster Analysis - Leveraging AI to sift through hundreds of data points across thousands of companies solves the challenge of not having the manpower to identify potential opportunities quickly and efficiently in a turbulent market. With the support of BridgeWise’s team, Psagot will be able to make more efficient changes to their funds’ investment mix to maximize earnings and growth for their clients.
• Detailed Analytic Reporting - BridgeWise’s AI technology seamlessly integrates market data into easy-to-read, easy-to-understand reports that even retail investors can understand. This will reduce the ongoing analytic burden for Psagot as they manage each fund.
• Global Market Data - Goren understands and acknowledges that many of his clients are interested in US-based investments. BridgeWise’s platform provides access to stock data and analysis across all major global markets to ensure their mutual funds have a good balance of US and other international sources.

AI Leading the Way into the Future of Investing

Investment banks, brokers, and family offices have a unique opportunity to start leveraging cutting-edge AI analysis to improve the way they invest and grow their clients’ wealth. As the technology continues to become more sophisticated and prevalent in the market, investment firms like Psagot will gain an advantage over those that fail to leverage tools like AI.

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