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Asset Management

GLOBAL STRATEGIES, INSIGHT-DRIVEN TRANSFORMATION

Asset management is the process of overseeing and directing a company's or an individual's investments to achieve specific financial goals. Asset management is typically performed by investment professionals, such as financial advisors, wealth managers, or investment managers.

The goal of asset management is to grow and protect an individual's or a company's wealth over the long term by selecting a diversified mix of investments that align with their risk tolerance and financial goals. This may include stocks, bonds, real estate, commodities, and other assets.

Key Features

  • The goal of asset management is to maximize the value of an investment portfolio over time while maintaining an acceptable level of risk.
  • Asset managers have fiduciary responsibilities. They make decisions on behalf of their clients and are required to do so in good faith.
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  • Asset management as a service is offered by financial institutions catering to high-net-worth individuals, government entities, corporations, and institutional investors like colleges and pension funds.

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Objective

These goals aim to achieve improved financial performance, fiscal stability and safeguard the organisation’s investment. External aspects like inflation and internal factors like staff efficiency can affect your organisation’s economic goals. The goals help you invest in quality infrastructure and optimise the lifecycle costs of your assets.

Some of the advantages of economic objectives include:

  • A Higher resale value of assets
  • Efficient use of resources
  • Reduced cost of operating the business

Process of Asset management

The process of asset management typically involves the following steps:

  • Defining investment objectives: The first step is to determine the investor's financial goals, risk tolerance, and investment timeline.
  • Conducting a risk assessment: The asset manager will assess the level of risk the investor is willing to take on and use that information to determine the appropriate mix of assets to include in the portfolio.
  • Building the portfolio: The asset manager will then select a mix of investments that align with the investor's objectives and risk tolerance.
  • Monitoring and rebalancing: The asset manager will regularly monitor the performance of the investments and make adjustments as needed to ensure that the portfolio remains aligned with the investor's goals and risk tolerance.

Lifecycle

Asset lifecycle is the number of stages that an organization’s asset goes through during the lifespan of an asset’s ownership. It is the period that an organization can effectively and efficiently utilize an asset to accomplish its business goals. An asset lifecycle typically covers all phases of an asset’s life from acquisition through maintenance and eventual disposal.

Benefits

Smart businesses don’t waste time trying to complete basis and repetitive asset management tasks manually by using the same outdated process over and over again. Investing in asset management software allows businesses to automate tedious and time-consuming asset management activities offering administration team to focus more on value-added activities.

Asset management can be especially valuable for individuals and companies that have complex investment needs, who do not have the time or expertise to manage their investments themselves, or who want to outsource the investment management process to a professional.

When working with an asset manager, it's important to choose a reputable and experienced professional and to regularly review and adjust your investment strategy to ensure that your portfolio remains aligned with your financial goals.

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