Ping An Asset Management Co., Ltd. (hereafter "Ping An AMC" or the “Company”) recently launched KYZ Risk, which provides technology-driven investment risk advisory services. This is a new offering in Mainland China built on the foundation of the Company’s asset management and investment advisory services, helping customers make better investment risk management decisions.
KYZ Risk is built upon the KYZ Intelligent Platform for Investment Decision-Making. It was developed by Ping An under its "finance + technology" strategy, leveraging Ping An AMC’s business experience and investment knowhow. The platform integrates big data and applies advanced technologies such as artificial intelligence (AI). The KYZ platform is used by Ping An Life, Ping An Bank and Ping An Securities, achieving notable success in investment performance, risk management and control. Ping An, as an industry leader, hopes to roll out the KYZ platform to other financial institutions, to better serve customers and the industry as a whole.
KYZ Risk is divided into three core modules: bond investment credit risk management, outsourcing investment risk management, and portfolio investment risk management. This innovative offering is a major milestone in the Group's technology transformation, with three key implications:
1) Signaling the technology transformation of Ping An AMC
Ping An AMC first laid the groundwork for its transformation into a “technology-empowered asset manager” in 2018. The introduction of KYZ Risk marks a significant step forward on this transformation journey.
KYZ Risk will aid Ping An and its clients in making investment risk management decisions with its high-quality underlying database, professional expertise and quantitative model derived from AI algorithms. Tapping into Ping An AMC’s experience in managing trillions of RMB-denominated assets, users can instantly analyze the liquidity and market risk of assets by using the risk analysis models on the KYZ Risk platform. Ping An AMC is also the first to apply machine learning in risk management for enhanced active risk management capabilities. Ping An’s proprietary AI-enabled early warning model can process huge amounts of data simultaneously, instantly tracking basic information, market data and media coverage, identifying financial fraud and analyzing risk correlations.
2) Creating an intelligent advisor with human and artificial intelligence for the asset management industry
KYZ Risk is a 24/7 smart advisor, providing clients with sustainable investment risk management capabilities. In particular, KYZ Credit, the credit risk management tool for bond investment, has core functions including ratings, early warning and pricing, covering more than 7,000 bond issuers. It studies the credit risk of industry bonds, local government financing platform bonds (urban investment bonds) and financial bonds through an integrated service comprised of data, modelling, tools and insights.
KYZ Fund, which provides outsourced investment risk management services, has conducted in-depth research on more than 7,000 mutual funds, using high frequency tracking (over 1,500 times per year) to monitor fund managers’ performance. It offers evaluation methods, featured strategies and entrusted review tools to FOFs (Fund of Funds, a pooled fund that specializes in investing in other funds) and MOMs (Manager of Managers).
KYZ Portfolio, which provides portfolio investment risk management services, brings international leading solutions to the local financial market to monitor more than 200 indicators and processes over 6 million data sets daily. It covers more than 50,000 outstanding bonds in the entire market. It provides comprehensive risk management functions covering different assets, such as stocks, bonds, futures and foreign exchange. It is a multi-dimensional tool for investment and risk-management teams to oversee their performance and risk.
3) Integrating investment and risk management to empower decision-making
Using big data and AI is already an irreversible trend in the field of financial investment. Applying these advanced technologies to financial investment scenarios to construct investment models, enhances the perspective, analysis accuracy and speed of decision-making. As such, an AI-enabled risk management platform can boost efficiency and improve the outcomes of investment risk management.
Going forward, Ping An AMC will continue to invest in novel technologies, to support the asset management industry’s technology transformation and innovation.