Asset managment
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The document discusses the current trends and challenges in asset management, highlighting the need for smaller firms to adapt quickly to competitive pressures and technological advancements. It defines key concepts in asset management, such as its types and frameworks, and explains the role of trust companies in providing comprehensive financial services. Additionally, the document emphasizes the importance of digital transformation and risk management in enhancing operational efficiency and client servicing within the industry.
Asset managment
- 1. https://www.linkedin.com/in/profakramhassan/ Asset Management and Trust Companies Prof Akram Hassan SME @ PMI
- 2. Agenda AM Definitions 01 AM Framework 02 Trust Companies 03 Be Delighted 04
- 3. AM grew at 12% To more than $112 trillion The forces driving the asset management industry are shifting, unlocking new opportunities and potential for disruption.
- 4. User Story Competitive market pressures are stronger than ever, and volatility is back with a bang, putting the onus on smaller and emerging asset managers to find new ways to adapt. As firms reassess operating models with urgency and look to differentiate their service against a backdrop of sustained pressure on fees and shifting investor product demand VUCA World In a period of volatile markets and intense competition asset managers need to be nimble. Cloud-based investment management software gives smaller and emerging asset managers the ability to automate burdensome data management and reporting workflows, whilst also providing a radically improved reporting experience for clients. Digital Transformation
- 6. Asset Management "An asset is an item, thing or entity that has potential or actual value to an organization". ISO 55000, 2014 (3.2.1) Asset management is the art and science of making the right decisions and optimizing the delivery of value. A common objective is to minimize the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered objectively in this decision making. Asset management is the coordinated activity of an organization to realize value from assets." ISO 55000, 2014 (3.3.1)
- 7. Importance of Asset Management Enables a firm to account for all its assets Account Helps guarantee the accuracy of amortization rates Guarantee Helps identify and manage risks Manage Removes ghost assets in the companys inventory Remove
- 8. Types of Asset Management Physical asset management stands for the process of handling things like fixed asset management, inventory management, infrastructure, and public asset management. Financial asset management refers to the process of managing procurement, developing an investment strategy, controlling budget and costs, handling cash, bonds, and stocks. Contractual compliance streamlines processes like IT asset management, digital asset management, contractual maintenance, and management of intangible assets. Physical Financial Contractual Asset Management
- 9. Differentiation Asset The management of assets, such as real estate, equities, bonds, etc., is referred to as asset management Wealth Management The goal of asset management is to maximize returns, whereas wealth management looks at financial situation Property Management The asset manager manages financial health, whereas the property manager takes care of daily tasks FacilityManagement Facility Management is restricted to physical assets that are utilized by and support the business' day to day operations. Investment Investment bankers operate on the sell side, while asset managers are on the buy side.
- 10. AM Framework
- 12. Developing a Strategic Asset Management Plan Complete an asset inventory Compute life-cycle costs Set levelsof service Exercise long-term financial planning STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 Before anything else, an owner needs to take count of all the assets that he owns. If he is not aware of the exact number of assets in his inventory, then he wont manage them effectively. If a business owner wants his asset management plan to be precise, then he should calculate the entire life- cycle costs of each asset. Many company owners make the mistake of calculating only the initial purchase costs. After computing the life- cycle costs, the next step is to set levels of service. Put simply, it means outlining the overall quality, capacity, and role of the different services that the assets provide. Ideally, the asset management process that a firm owner adapts should easily translate into long-term financial plans. With a good financial plan in place, the owner can then assess which objectives are feasible, and which be prioritized.
- 14. Asset Management Model (Lean)
- 17. Trust Companies
- 18. T R U S T C o m p a n i e s What Is a Trust Company? A trust company is an entity that acts as agent, or trustee on behalf of a person or business for the purpose of administration, management, and the eventual transfer of assets to a beneficial party.
- 19. What Trust Companies Offer? Trust companies offer asset-management services, such as bill pay, check writing, and other features. Some trust companies can build financial plans for their clients for additional fees, depending on the level of service needed. Plan Management Sustainment
- 20. Trust companies provide a wide array of services, ranging from trust and investment administration to comprehensive wealth management services, such as tax preparation, tax advice, and financial planning services. For consumers seeking a 'one-stop- shop' approach to the management of their financial affairs, trust companies may offer the perfect solution.. A trust may require the client to have a net worth of at least $500,000. Who want to engage the services of a Trust company?
- 21. Be Delighted
- 22. Asset Management Trends in 2022 Double Mandatory Inflation comes knocking Standardizing ESG reporting and disclosures Cybersecurity concerns The move to cloud solutions Asset managers ability to comply with their regulatory reporting obligations is increasingly tied to their ability to consolidate and aggregate data across multiple systems. Rethinking Data Strategies Strong risk governance frameworks providing daily automated monitoring of regulatory and fund risk profile limits, with alerts to notify managers of any breaches, are essential for maintaining fund integrity. A heightened focus on risk
- 23. Bring asset management into the future 01 02 03 05 06 Understand Understand the reason behind assets existence. What purpose does this asset serve? Why was it procured? Gain knowledge about the assets condition Predict depreciation rate and associated risks. Forecast asset disposal. See how effectively the asset is being utilized What value is the asset delivering currently? Is it fulfilling the existing expectations? Assess the existing maintenance program What is being done to maintain and improve the assets lifecycle? Assess Utilize Sustain Maintain 04 Forecast Identify future demands Will there be a change of service expectations? Is the asset robust enough to deliver future demands?
- 25. THANK YOU Prof Akram Hassan SME @ PMI