UOB Asset Management and Value3 Advisory to launch AI-enabled credit rating platform in ASEAN for more effective bond investments

Stocks and Financial Services Press Releases Wednesday November 13, 2019 10:02
SINGAPORE--13 Nov--PRNewswire/InfoQuest

UOB Asset Management Ltd (UOBAM) and Value3 Advisory Pte. Ltd. (Value3)[1], a financial technology (FinTech) start-up, today announced their collaboration to launch an artificial intelligence (AI)-enabled credit rating, research and reporting service in ASEAN. Through their collaboration, both organisations aim to help bond investors obtain credit insights in real time so as to make more effective investment decisions. UOBAM will also harness AI to enhance the market research and insights capabilities of its fixed income team.

UOBAM will combine its regional investment expertise with Value3's machine learning and natural language processing technologies for thorough predictive analytics of ASEAN corporate bond issuers' financial and non-financial data collected from diverse sources. UOBAM will also provide regional market and industry insights to help Value3 roll out in ASEAN its proprietary AlgoCRED AI-platform[2], an online portal offering automated credit ratings, research and insights, for the region's corporate bonds, including unrated bonds[3]. Automated quantitative and qualitative assessments will then be conducted to derive credit ratings, to create credit risk indicators with real-time alerts and to generate detailed credit rating reports.

For the first time, asset managers, financial advisory firms and institutional investors will be able to access independent credit ratings[4] for unrated bonds in ASEAN by subscribing to the AlgoCRED AI-platform. This will enable the bond investors to evaluate the issuers' creditworthiness and the issuances' investment merits more accurately.

[1] Value3 is a finalist of the 2019 FinTech Awards at the Singapore FinTech Festival.
[2] Value3's AlgoCRED AI-platform is currently available in Switzerland, covering approximately 1,400 Swiss franc bonds.
[3] Refer to bonds that have not received a credit rating from one or more of the three global rating agencies: Fitch, Moody's and Standard & Poor's.
[4] Corporate bond issuers do not have to pay fees for their issuances to obtain credit ratings on the AlgoCRED AI-platform.

Mr Chong Jiun Yeh, Chief Investment Officer (Equities and Fixed Income) of UOBAM, said, "Across ASEAN, many corporate bond issuers may shy away from seeking ratings for their bond issuances due to the high fees that may be incurred or the time needed to obtain and to maintain the rating. As a result, investors including asset managers such as UOBAM have to rely on internal resources to determine the issuances' investment merits. Greater visibility of credit ratings of bond issuers will also help benefit the corporate debt markets in the region."

Mr Abhinav Mishra, Co-Founder and CEO of Value3, said, "Different financial institutions will typically rely on their own methodology to assign credit ratings to unrated bonds, leading to inconsistent ratings in the market. Through our collaboration with UOBAM, we will bring our proprietary and award-winning AlgoCRED Al-platform to ASEAN to address the demand for standardised credit rating services for unrated bonds. This will help corporate issuers, especially small- and medium-sized enterprises, to be more transparent in their disclosure and to attract more investors for their bonds."

UOBAM will also work with Value3 to embed environmental, social and governance considerations into an exclusive credit rating model on the AlgoCRED AI-platform to facilitate its own responsible investing efforts.

Mr Chong said, "UOBAM has a strong track record[5] in fixed income investing and is committed to using technology to deepen our capabilities. Through our collaboration with Value3, we will tap AI to automate our credit research and assessment processes and be far more efficient in our fixed income evaluation and investment management."

The credit rating, research and reporting service is expected to be launched first in Singapore in December 2019 and subsequently in the other ASEAN markets.
[5] UOBAM was named best fixed income fund house at various industry awards. Please refer to https://www.uobam.com.sg/about-us/awards.page for the full list of awards.
About UOB Asset Management

UOB Asset Management Ltd (UOBAM) is a wholly-owned subsidiary of United Overseas Bank Limited. Established in 1986, UOBAM has been managing collective investment schemes and discretionary funds in Singapore for more than 30 years. We currently manage 56 unit trusts in Singapore and are one of the largest unit trust managers in terms of assets under management. As at 30 September 2019, UOBAM and our subsidiaries manage about S$35 billion (US$25.3 billion) in clients' assets.

UOBAM has an extensive presence in Asia with regional business and investment offices in Brunei, Indonesia, Japan, Malaysia, Singapore, Taiwan and Thailand. Our network includes UOB Alternative Investment Management Pte. Ltd and UOB Islamic Asset Management Sdn Bhd in Malaysia. We have two joint ventures: Ping-An Fund Management Company Limited (China) and UOB-SM DS Asset Management Pte Ltd (Singapore). In addition, we forged strategic alliances with UTI International (India) and Wellington Management Singapore. UOBAM is one of the most awarded fund management companies, winning the 'Asia Fund House of the Year' at the AsianInvestor Asset Management Awards 2019, 'Top Investment Houses in Asian G3 Bonds' - Ranked 4th at The Asset Benchmark Research Awards 2019, 'Best Asset Management Firm Singapore' and 'Best Asia Fixed Income Fund House Singapore' at the International Finance Awards 2018 and 'Best Fixed Income Fund House' award at the Morningstar Awards 2017.

About Value3 Advisory
Value3 Advisory Pte Ltd (Value3) is a B2B FinTech company offering a capital market AI-platform for independent, predictive and fully automated credit ratings, research, ESG and analytics.

The platform empowers buy-side investors and risk managers with better decision making with their portfolio selection, risk monitoring and early warning indicators. The sell-side is empowered with the ability to produce better research and gain deeper insights with 80% of their tasks automated in the platform. The platform allows financial institutions, investors and researchers to integrate in-house insights on top of the AI-driven results. The platform also provides capital market investment visibility for SME/MSMEs that are of good quality based on ESG factors and SDG screening criteria.

Value3 combines financial data with unstructured online digital footprints, local and global news, corporate/regulatory events, governance, energy usage, environmental factors, market sentiment, geopolitics, demographics, global inter-linkages, industry trends and patterns of the companies from diverse sources to transform data overload into actionable insights. The platform has the ability to cover both public and private companies of all sizes across more than 30 industries globally. Active clients across Singapore, Europe, and India markets are leveraging the AI-capability of the platform.

Value3 is headquartered in Singapore with presence in Europe and India as well. Value3 is an award winning FinTech and AI company, winning the 'Best FinTech Startup Award' at IMAS Bloomberg Investment Conference 2019 in Singapore, 'Best FinTech Startup under Investment and Wealth Management category' at Nasscom India FinTech Day 2019, 'Most Disruptive FinTech Startup' at Money20/20 Asia 2019 in Singapore, 'Best AI-platform for Capital Markets' at Wealth&Finance 2019 in UK, 'Top-10 Wealth Management solutions' at Banking CIO Outlook 2019 in Europe, and 'Most Innovative FinTech Product Award' at India FinTech Forum 2018.

Important Notice & Disclaimers: This publication shall not be copied or disseminated, or relied upon by any person for whatever purpose. The information herein is given on a general basis without obligation and is strictly for information only. This publication is not an offer, solicitation, recommendation or advice to buy or sell any investment product, including any collective investment schemes or shares of companies mentioned within. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this publication, UOB Asset Management Ltd ("UOBAM") and its employees shall not be held liable for any error, inaccuracy and/or omission, howsoever caused, or for any decision or action taken based on views expressed or information in this publication. The information contained in this publication, including any data, projections and underlying assumptions are based upon certain assumptions, management forecasts and analysis of information available and reflects prevailing conditions and our views as of the date of this publication, all of which are subject to change at any time without notice. Please note that the graphs, charts, formulae or other devices set out or referred to in this document cannot, in and of itself, be used to determine and will not assist any person in deciding which investment product to buy or sell, or when to buy or sell an investment product. UOBAM does not warrant the accuracy, adequacy, timeliness or completeness of the information herein for any particular purpose, and expressly disclaims liability for any error, inaccuracy or omission. Any opinion, projection and other forward-looking statement regarding future events or performance of, including but not limited to, countries, markets or companies is not necessarily indicative of, and may differ from actual events or results. Nothing in this publication constitutes accounting, legal, regulatory, tax or other advice. The information herein has no regard to the specific objectives, financial situation and particular needs of any specific person. You may wish to seek advice from a professional or an independent financial adviser about the issues discussed herein or before investing in any investment or insurance product. Should you choose not to seek such advice, you should consider carefully whether the investment or insurance product in question is suitable for you.

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