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Daiwa SB Investments Adopts FRONTEO’s AI-Based KIBIT Engine

FRONTEO, Inc., a leading provider of artificial intelligence (“AI”) based big data analytics services, announced today that Daiwa SB Investments Ltd., one of the largest investment management companies in Japan, has decided to adopt “KIBIT,” the AI engine independently developed by FRONTEO.

Daiwa SB Investments will first employ KIBIT in July 2017 in the management process of Japan Growth Theme Focus (or “Grand Chef”), an open-ended fund that Daiwa SB Investments manages.

Since January 2017, Daiwa SB Investments and FRONTEO have conducted a proof of concept (“PoC”) to investigate if KIBIT can learn the tacit knowledge of fund managers while selecting the shares in which to invest. The two firms have also worked together to further verify whether KIBIT can analyze the knowledge it has learned from the experienced fund managers and provide effective support throughout the management process.

The PoC proved that, while it takes much time for fund managers to analyze the large volume of corporate information, KIBIT is able to learn the tacit knowledge and analyze the data in a way that enhances efficiency in selecting the shares in which to invest.

Given the results, Daiwa SB Investments has decided to adopt the KIBIT-based data analysis platform with an aim to further reinforce its asset management capabilities with deeper and more sophisticated analysis of corporate information and other data throughout the management process.

Going forward, FRONTEO will continue to support analysis using KIBIT and provide clients with unprecedented added value in making asset management decisions. By doing so, FRONTEO will support Daiwa SB Investments in its pursuit of providing “Top in Quality”® services that facilitate the accumulation of assets for its clients.

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