Definition of asset management

The term asset management is synonymous with wealth management. As a financial service provider, an asset manager manages the assets of his or her clients. The task includes not only providing professional advice, but also making investment decisions based on each client’s investment strategy, risk tolerance and financial situation. Asset management is aimed at wealthy private and institutional investors who invest their assets in liquid asset classes (equities) and illiquid asset classes (funds).

What is asset management? 1

The term asset management is synonymous with wealth management. As a financial service provider, an asset manager manages the assets of his or her clients. The task includes not only providing advice, but also making investment decisions based on the client’s investment strategy, risk tolerance and financial situation. Asset management is aimed at wealthy private and institutional investors who invest their assets in liquid asset classes (equities) and illiquid asset classes (funds).

Why asset management? 2

Asset managers efficiently allocate capital by investing monies provided by private and institutional investors in productive investments.

What are asset management solutions? 3

Asset management solutions are software-based products that help investors to structure their assets, make investment decisions and manage their portfolio. Investors have a variety of options at their disposal:

Insourcing

Insourcing means purchasing and utilizing software-based products in-house. In order to efficiently transact, analyze and manage their investments, investors can make use of a variety of IT products and software solutions that are freely available on the market. They use externally developed asset management solutions that they introduce, familiarize themselves with and operate independently on an in-house basis. Product training courses enable investors to become experts in their own right. By continuously developing the products, investors can regularly expand their knowledge and screen the market for better products. In order to manage their assets successfully, investors often need several IT products, which then need to be linked to one another, leading to additional work and expense. Moreover, the required interfaces often do not exist, which means that the various IT products have to coexist separately without compatibility.

Outsourcing

Outsourcing involves the application of software-based products by a service provider or asset servicer. Rather than operating IT products independently of one another, the investor can employ the services of a modern asset servicer. The service provider accesses the investor’s data and imports them into its systems, tailored for the sector concerned. Depending on client requirements, the service provider supplies evaluations, analyses, reports and workflows and makes them available to each individual client via portals with interactive capabilities. Clients therefore do not need to laboriously and resource-intensively familiarize themselves with the IT products they have selected but benefit from state-of-the-art solutions applied by the asset servicer, which can be custom-designed to suit each client’s individual needs.

As a next generation asset servicer, AssetMetrix offers private capital investors services that optimally support them and ease their workload throughout the entire investment process using advanced technologies. Investors can select from a variety of modules that provide sophisticated asset management solutions for front, middle and back office functions. AssetMetrix leverages a range of customized solutions for investors. Each individual customer has access to the complete range of data, evaluations, analyses, reports and workflows around the clock via a dedicated portal. Clearly defined access rights enable internal and external interfaces to access the data individually and create transparency both quickly and reliably. In addition to an outstanding level of service, investors also benefit from a technology that is continuously being enhanced. Updates are implemented without additional effort for the investor, new applications or tools are introduced both extensively and comprehensibly.

Data input: AssetMetrix takes care of the labor-intensive input of all the data relevant to your portfolio on your behalf. It also validates the data and stores it centrally as a "Single Source of Truth".
Digital data processing: After the portfolio and market data have been collected and validated, the AssetMetrix IT system automatically processes the data.
Client output: After the portfolio and market data have been processed, all the analyses and reports are made available to the client via the AssetMetrix web portal.

Summary 4

The term asset management is synonymous with wealth management. An asset manager manages the assets of his or her clients. Asset management is aimed at wealthy private and institutional investors who invest their assets in both liquid and illiquid asset classes. Whereas private investors buy know-how and expertise by commissioning an asset manager, institutional investors have the necessary expertise and experience to transact investments in their own right. Asset managers leverage a range of solutions that are available to them to manage their activities, which are primarily software-based products that help investors to structure and transact their investments and manage their portfolios. Investors can purchase these IT solutions and use them for their own purposes, i.e. insourcing. To avoid having to independently operate this array of IT products, investors can also employ the services of a modern asset servicer, i.e. outsourcing.

Are you interested in the advantages that outsourcing offers? Please allow us to introduce you to our services.

AssetMetrix is Europe’s leading next generation asset servicer for private capital investors. Based on innovative financial technologies, AssetMetrix offers modular outsourcing solutions for front, middle and back office activities for Limited Partners and General Partners alike. Our clients benefit from state-of-the-art analysis tools, a service-oriented corporate culture and our independence. AssetMetrix does not act as an investor, investment advisor or placement agent.