Asset Management

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Duties Your Asset Management Company Must Perform

The duty of your asset management company is undoubtedly to make a proper management of your business' reserves - better known as assets - but there are several other things that the asset management company must look into. Let us look into the duties that an asset management company is supposed to perform:

- The first and primary duty is to keep and maintain a record of all the physical assets of the client's company. The most obvious assets to look into are the property and the finance of the company, but they must also look into investments, stocks, insurance policies, and anything else that constitutes money.

- Asset management companies will also look into the bookkeeping affairs of the company. They will maintain the records for accounts, and will provide updated records in regular timeframes. They are sometimes expected to perform additional tasks that the company requires during taxation, such as filing of returns.

- Inventory maintenance is also a responsibility of your asset management company. They have to keep all records of the inventory in stock, and even suggest limits for stocking up on them. They can alert the company whenever the raw materials are running low. Apart from the raw materials, asset management companies should also take care of the inventories of all supplies, devices and equipment used by the company for their business.

- Asset management companies must maintain a list of all the suppliers to the company. In most cases, it is their duty to themselves communicate with the suppliers and stock up on raw materials for the company. Sometimes, they will also undertake to communicate with the wholesalers who take the products from the company for selling. That means, asset management companies would undertake a company's entire buying and selling process, if they are contracted for the service at the outset.

- One very important service the asset management company must provide is investment advice. They must carefully instruct their clients how to make their investments properly, so that their financial assets show an improvement.

- In some cases, asset management companies can also look after the software and other knowledge-based assets of the company. In companies that deal with software, the job of the asset management company would be to manage the knowledge assets, which may not be in a physical form. They will also be expected to manage the IT resources the company operates with.

In this manner, there are several duties your asset management company must perform. Of course, you can decide in advance what kind of duties you really require, so that you don't end up paying for more. Also, you must draw proper contracts so that the mutually decided clauses are adhered to.

Author Resource:- With so many choices for managing your assets it is hard to know what company is the best. You need to find a company that is reliable and proven and invests your money in a way you are comfortable with.
Let us Help!

Kip D Goldhammer owns and operates http://www.assetmanagementcompanyreviews.com Certified Financial Planner

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Forex As an Asset Class and Financial Instrument

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Forex has always been classified as an asset and an instrument of financial transaction including both the spot and futures market. By one argument, the forex market makes a pretty much bigger turn over on a daily basis than the commodities and services trade although conceptually forex is there to facilitate the latter two. Need any more evidence for forex's status as financial instrument and an asset class of its own right?

Sequentially, the logic goes that any financial instrument can be thought of as fit to be an asset class.

So What Is A Financial Instrument?
Any document, either virtual or real, which is assigned some monetary value and legally tradeable in the market as a package of an asset, is a financial instrument. The most traded one amongst all financial instruments is the equity based one.

Plain vanilla is an example of simplest financial instruments which has a simple strike price and expiration date. This option is devoid of advanced features but optionally there can be what is known as a knock-in option which activates the instrument only if the underlying stocks strike a preset price.

But coming back to the discussion of forex as an asset class, the overall foreign exchange traded daily has jumped by 38% between April 2005 and April 2006 and has more than doubled since 2001. One significant reason that can be attributed to this is growing acceptance of forex as asset class strongly backed up by the fund management assets such as hedge funds and pension funds. On the same breath, one can not negate the advent of easier internet based retail trading platforms which pitched into attract large volumes.

We have said that forex is an asset class. The asset class is basically categorized as debt based and equity based depending on whether the investor gets to own the asset or not. For example, debt asset is when an investor extends a loan to the owner of asset and the equity based asset reflects the ownership of the investor.

What Does It Mean To A Retail Investor?
The categorized forex asset class is a wise investment opportunity for a retailer. You can systematically acquire and hold a foreign currency, such as euro or pound sterling till it appreciates sufficiently over time. Speculative forex trading is another avenue but it is ridden with significant risk factors. Transnational executives hold a considerable amount of forex in their kitty.

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What is Real Estate Asset Management?

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Asset ManagementAs Asset Managers we look at the entire existing portfolio with regard to any planned portfolio changes.

Operational Cost and Income Structure. We investigate the cost and income structure to identify opportunities for improvement. This can be active Supply Chain Management, combining the entire portfolio and in the next step bundling the buying power of different portfolios we manage in negotiations with suppliers.
Capital Expenses Based on the results of the Due Diligence. We establish a rolling Capital Expenses Budget Plan which is kept up to date with the actual needs. We identify those investments that might bring a quick win through improvement of the rental situation.
Organising and Supervising the Property Management. Based on a detailed scope of works we develop based on the investment philosophy of the investor, we help to identify and contract appropriate service providers for Property Management.Main tasks for the Property Manager is rent collection, dealing with tenants and service providers, maintenance and repairs within the framework set by the owner or his Asset Manager.
Performance Measurement
is key to our service philosophy: What you measure is what you get! (also see article "Performance Measurement in Real Estate Investment") We have developed a system of Service Level Agreements with Key Performance Indicators for Property Management including performance reviews and evaluations. We always incorporate a performance based element into any management fee, including our own.There is also the aspect of measuring the performance of each property in a portfolio and the entire portfolio against the business plan at the outset. This aspect is reflected in our performance focussed reporting. A separate posting for Performance Measurement will follow.
Reporting in compliance with the needs of the investor/owner. We develop a reporting structure and make this part of any contract with Property Managers and/or Facility Managers. It defines time and contents of any regular or ad hoc reports. A summary report by the Asset Manager is available to the owner on an internet based Client Portal and is the Executive Dashboard.Applying the Balanced Score Card philosophy this report contains the actual data and performance against agreed targets. Besides the obvious like rental income, this might include tenant turnover (as a measurement of the customer care by the Property Manager), the meeting of reporting deadlines and financial management
and other goals that are important to the investor.Operational reporting is also of growing importance for lenders. Not only in cases of securisations extensive quarterly reports are required. If you are interested to find out more about our reporting tools please check back weekly.
Risk Management. Because financial institutions have to perform a risk assessment before any lending, if the investor can show that he has his own risk management in place it will influence the interest rate positively. We establish and agree a risk matrix with the owner and actively manage it during the operational phase.
Outline Proposal. As a guideline we have prepared a generic Outline Proposal which will be detailed in each case for each investor and Property.For more detailed information about Real Estate Asset Management please visit the website of Berlin Portfolio Ltd.

This list is not complete by any means but should provide an insight on the main deliverables of the Property Asset Management Service.

Source: Free Articles from ArticlesFactory.com

Author:

The author is a Berliner and active in the German property market for more than 25 years. Experienced as project manager, developer and head of the German Business for a UK based property consultancy he now owns and operates Berlin Portfolio Ltd. His international background and local expertise is an ideal combination for an international investor. Contact: E-Mail

What do Asset Management Companies Do?

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What do asset management companies do? These companies take care of the investments of a client by investing in various schemes.

There are a number of asset management companies to choose from given that they offer a wide range of services. Some examples of these include financial investments, production machines, technology and even office furniture and supplies.

When we talk of financial events, this includes the tracking, recording, properly accounting and investing of certain assets so the client will be able to make the most of what they currently have. This is may at times be risky for the client but there are ways to avoid that. These schemes are namely fixed income, equity, balanced, money market and commodities. Let’s discuss these for a moment.

Fixed income investments are those that will generate a regular flow of income for the investor. This is the safest one around and this is usually in the form of government bonds.

Equity has some risks involved because no one has control of the stock market. There are various factors that could make it go up or down such as the performance of the company and other world events. To prevent losses, experts have to study the market, assess the ricks and volatility to pick which one will get the best possible returns. Equity schemes can be done regardless of industry or country so don’t feel bad if the US stock market is not doing too well.

Then there is also balanced where the mutual fund company will invest in several assets such as shares, bonds and stocks. The risks are higher here but it may soon pay off in time especially for those who decide to wait it out for a few years.

The money market includes trading treasury bills, commercial paper and other liquid securities. You get a certain amount each month because of interest. Safer than equity or balanced but the rate of return is much lower.

There are also commodities. Examples of these include gold and other precious metals as well as the most talked about issue right now, oil.

Before any decision is made, it is the job of the asset management company to do some research and then pass this on back to the client who will say yes or no.

If new equipment is needed, the asset management company will help the client look around for the best possible one around before buying it. This is very useful when the machines are either damaged or already outdated.

These services begin the moment they are hired by the client so they will be there from the planning stage all the way until the deal has been completed.

Asset management companies have been around for years and you just have to find one that will be able to deliver what you require of them. Before you select one, do some research on your own to see who are the clients and what have they done in the past because you surely don’t want to entrust your assets just to anyone who gives you a call.

So what do asset management companies? They help you accumulate wealth by using their expertise. Do you need it? Yes because they are the only ones who can do the job.

Things about Asset Management that you need to know

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Asset management seems like a fancy term for people who are not much into investing and into business but the truth is, it is something that every people need to survive the rising costs of living and inflation rates.

The concept is actually similar in a way to putting the money that you earn in banks but the difference is, asset management makes use of stocks, mutual funds, properties and bonds to further increase your wealth and assets. You see putting your money in the bank is not enough. You can only do this for the money that you feel you will need during emergencies. You can put it there and let it earn a small interest, after all you can easily withdraw It when you need it.

However, for the extra money that you have that you don’t really need, invest them. Mutual funds, bonds and stocks yield higher rewards than the measly interests that banks’ provide. In just a few years, you can earn half of what you invested, something that you can’t do with the bank.

But before you get into asset management and hire yourself a professional, read through the items below to help orient yourself to the field of investing.

1. There are a lot of scams and con artists in the world

Money can make people do things that they will not normally do. This is a fact of life that you need to know before you start hiring somebody to handle your assets and properties. That way, you will be more careful when looking for asset managers.

When hiring somebody, make sure that you have done some background check first on the person. As much as you can, hire only those that you know personally. If you don’t know anyone who can handle your finances, ask the people that you know to recommend. Start with your family and friends as they will give you a good recommendation.

But before you hire the guy, set up a meeting first. Even if he or she is recommended by your most trusted friend, you cannot be too sure.

And after you have hired him or her, still take an active part with the investing of your money. Make sure that you are informed about every investment made. Do not give full power to the asset manager to decide on investing issues. Your approval must always be asked before making an investment.

2. Diversify

This is the golden rule that asset managers go by. Diversification means that you need to put investments in more than one product and not in one investment product. The yield can be good but it isn’t worth it to risk your entire savings in one go.

If your asset manager has not done this, think twice before continuing the service. The adage "Do not put all your eggs in one basket" holds true for this field. You see investments can also be very risky. Even those that are considered a surefire success can suddenly fold, leaving you with big losses.

That is why you need to make sure that you have something to fall back on if one investment falls through. If you diversified your investments in asset management, you can still count on your other investments to prop you up on your feet again.

Lessons in Asset management

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Asset management is a concept that people are oftentimes wary of. Although they do want their hard earned money to beget huge yields and interests, people are not always comfortable with the idea of other people managing their money. Add to these doubts the number of stories circulating of investors losing their money because of companies that have folded during the dot.com boom.

But asset management need not be something that you have to be afraid of. In fact, it can be pretty rewarding financially as you are able to spread your money across different investment products. This is better than putting your money in banks where the yield is not even enough to combat the inflation rates of the currency and the rising costs of living. When done the right way, your money can serve you until your retirement. The trick is to find the right asset investment manager and to get involved in the investing.

Below are some lessons on how to start and survive asset management. Read on before you get into the program.

1. Choose your manager wisely

When hiring an asset management person make sure that you know him or her. If you don’t know anybody who can do it for you, ask for people to recommend managers that are good. Start asking your families and friends as they will give you more personalized choices. When asking for recommendations and referrals, do a little background check first. Ask how many years the person is working for the one who made the recommendation. Ask for his accomplishment and his track record over the years. A good performance for one person may not be good for another.

Do not just be contented with one referral. Get a lot and then compare each one to the other. That way, you can select the person that you feel is the best among the best. When evaluating their expertise, look both on the paper and in person. Remember that these people are very good with charming their clients. So it’s good to base your decisions also on something that is really concrete.

2. Have a say

A common mistake of most people who hire asset management people is once they get someone, they wash their hands off the entire thing. Don’t. Show the guy or gal that you want to take an active part in managing your assets. This will prevent any hanky-panky because they know that you are monitoring your money.

Do not give the full control to the manager when it comes to making investment decisions. The final say should always be yours. So before investing in something, the person you hire should first present you with the background of the investment and if possible show other possible investments that are similar to it so that you will have the chance to compare.

3. Learn the biz

It is not enough that you know what the goings on of the asset management, you also need to understand it. Some people may not give full control to their managers but will sign anything that these managers give them without really understanding what the papers are saying.

Remember that although you have worked with the same person for years or a friend of yours know him personally, he or she can still rob you of your money. Asset management is a risky and cruel business. Make sure that you are prepared to stand guard over your investments.

Do You Need Asset Management

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Do you need asset management? If you have a lot of businesses and can’t keep track at one instance, then the answer is yes. For such a task, you don’t hire someone inside the company but an outsider who has the expertise to watch over your financial investments.

Professionals who do this kind of work are employed by mutual fund companies. Unlike banks that just keep your money where it earns interest, these companies pool the resources of several investors and place them in different types of instruments. The most popular ones are listed below.

First is called fixed income. By definition, these are investments that will generate a regular flow of income for the investor. Clients that want to invest here are usually issued government bonds.

Next is equity. Unlike fixed income, there is a bit of risk involved here because you are investing in the stock market. To prevent losses, experts have to study the market, assess the ricks and volatility in order to get the best possible returns. Equity schemes are neither limited to a certain industry nor country. This means that it is possible to invest in the stock market in Europe or the Asia Pacific region.

There is also balanced where the mutual fund company will invest in a mix of assets such as shares, bonds and stocks. The risks are higher here but it may soon pay off in time especially for those who don’t mind waiting for a few years to get their investment back.

The money market includes trading treasury bills, commercial paper and other liquid securities. You get a certain amount each month because of interest. It is safer than equity or balanced but the downside is that the rates are usually lower.

Some clients may choose to invest in commodities. Examples of these include gold and other precious metals as well as the most talked about issue right now, oil. The price of oil has gone up by more than 50% this year and it is hard to tell when it will go down. There are various factors affecting this even if Saudi Arabia has pledged to increase production such as the heightened tensions between the US and Iran.

If you want to increase your portfolio, then perhaps you should hand get into asset management. Don’t forget that there are risks involved so there will be times that you will make some and lose some. By diversifying, some people have been able to double their fortune. To know which one is the best to get into, talk with someone from one of these firms to help you find the perfect scheme.

What do mutual fund companies get for making you money? A certain amount which includes fees and expenses but that depends on the arrangements made with the mutual fund company. Then there are also additional expenses called brokerage commissions. This is usually incorporated into the price of the fund that is reported 3 months after the fund’s annual report.

So do you need asset management? Yes because despite the amount you pay, it is a win-win situation when it comes to asset management between the client and the mutual fund company. For those who are thinking of getting into it, don’t even bother if you are not a high roller.