60 seconds on data science in fund management

Ben Wicks explains how fund managers are using data science to improve their investment returns.


The fund management industry is an information industry at heart. Fund managers have to take information in, process information and derive insights from it and then place an investment which reflects that judgement.

To get an edge in fund management you need to be doing something better than the other person on the other side of the trade and that is how you find alpha.

Alpha can come from better analysis of information, better combinations of investments and risk management or it could come from better information in the first place.

This is where we think data science is very interesting, because if you bring in a very large amount of data relevant to an investment, and if you can extract insight from that information using data scientists, then there is a good chance you might find something that no other investor has discovered.

Important information: The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This article is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the views and information in the document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Issued by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA, which is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored.