#Japan #Tokyo #MONO Investment #FactorLens #Kei Nakagawa

MONO Investment's Innovative Leap into AI

In a groundbreaking development for the financial services sector, MONO Investment has announced that Professor Kei Nakagawa from Osaka Metropolitan University will serve as a technical advisor for their upcoming AI-driven factor analysis engine, MONO FactorLens. The service is slated for launch in August 2025 and aims to revolutionize asset management through advanced analytics and integration.

What is MONO FactorLens?

MONO FactorLens is set to expand upon the existing capabilities of MONO Investment's asset management support platform, which currently includes features like account aggregation, risk-return visualization, and future simulation functionalities. This new engine is the first of its kind, allowing for the breakdown and visualization of various asset classes—including stocks, bonds, and mutual funds—on a factor-based framework. By offering an intuitive and compelling assessment of assets, MONO FactorLens is designed to enhance the financial advisory experience for both advisors and clients alike.

The integration of FactorLens doesn't stop with its stand-alone capabilities. It is also set to be implemented within MONO's advisor-focused CRM, WealthForce, and offered as an API for brokerage firms, facilitating a seamless integration into existing platforms.

The Motivation Behind MONO FactorLens

The modern financial landscape increasingly demands advanced visualization of client assets spread across multiple brokerage firms. Responding to this wave of need, MONO Investment has already facilitated connection with account information from 26 major brokerage companies through their MONO Account Aggregation service. With this service, automatic retrieval and centralized management of asset balances and transaction histories is achieved.

Moreover, clients and advisors are provided with real-time risk-return calculations and Monte Carlo simulations based on the acquired assets. This empowers investors to visualize their current risk exposure and the probability of reaching future goals.

The upcoming MONO FactorLens will add further depth to these capabilities, incorporating factor analysis and AI-driven stress scenario assessments into a single integrated platform that presents vital investment decision-making information in one glance.

Key Features of MONO FactorLens

• - Factor Attribution: This feature breaks down the risks of various asset classes by identifying which factors contribute to risk. By analyzing macroeconomic variables such as interest rates, inflation, and economic trends, it paints a complete picture of the portfolio’s risk profile. Under Professor Nakagawa’s framework, actual market data will quantify the relationship between different economic indicators, making it easy to understand where strengths and vulnerabilities lie within the portfolio.

• - AI Stress Testing: Utilizing historical market scenarios like the Lehman Shock and the COVID-19 crisis, this feature assesses the resilience of holding assets. Moreover, it is equipped to analyze AI-generated futuristic scenarios, predicting the potential impact of future market shocks on investment portfolios.

• - Instant Analysis and User Experience: The entire analysis, from account linking and asset acquisition to factor breakdown and simulation, is completed in an average of 0.3 seconds. With all results integrated into a single dashboard, advisors can interact with clients confidently without the need for extensive calculations.

• - API Provision & Integration with Existing Systems: This functionality will be available through REST API and GraphQL, allowing smooth integration with existing brokerage CRM systems and proposal tools. User interface templates and dashboard examples will be provided to facilitate rapid implementation.

Future Plans for MONO FactorLens

• - June 2025: A preview version will be available for existing clients on WealthForce.
• - August 2025: The beta version of the MONO FactorLens API will be publicly released.
• - Post-2026: The platform will gradually expand to include ESG factors, alternative data, and international market adaptations.

Insights from the Team

Professor Nakagawa expressed excitement about his role in the development of MONO FactorLens, highlighting its aim to make factor analysis and AI implementation accessible for advisors in the field. He believes that the sophisticated calculations made visible through an intuitive and elegant dashboard will undoubtedly enhance the quality of proposals in securities sales.

MONO Investment’s representative directors, Tatsushi Sasaki and Ryo Nakanishi, echoed his sentiments, emphasizing that what truly matters in providing asset management advice is not complex theories but clear, actionable insights. They believe that MONO FactorLens successfully integrates risk-return analysis and factor decomposition, seamlessly fitting into existing advisory workflows for improved client satisfaction and income performance.

For further inquiries or information about MONO FactorLens and other associated services, interested parties can reach out via the designated contact forms provided on the company’s website: MONO Investment Contact.

Company Overview

MONO Investment is based in Shinagawa, Tokyo, and was founded on January 29, 2020. With service offerings including WealthForce and Investment Concierge, the company focuses on asset management AI research and development, striving to improve how financial advisors can serve their clients efficiently and effectively.