Asset management

Asset management is the process of maximizing the value of your assets. Asset management professionals have a fiduciary responsibility to make decisions in the best interest of their clients. The goal of asset management is to maximize value while minimizing risk. The first question to ask a client is their level of risk tolerance. Risk-averse individuals, such as retirees and retirement fund managers, typically need a low-risk portfolio. More adventurous people may want to explore higher-risk investments. However, the average investor will be somewhere in between.

What is Asset Management?

Asset management is the process of maximizing the value and efficiency of your assets. The process involves planning, monitoring, and analyzing costs, and must be done responsibly. An effective asset management process will help you achieve optimal growth and profitability and encourage the sustainability of your business. It is useful for all types of businesses, but is especially useful for those with large physical assets, field work, or diverse equipment. The asset management process varies, but generally involves meeting with your asset manager and determining your risk tolerance. The manager will also work with you to define your financial goals and create a roadmap to reach them. They will also research market trends and companies’ financial documents to find promising investments. Once you have made your investment decisions, an asset manager will maintain your account by trading underperforming assets for promising assets. A good asset management plan will help managers analyze assets in terms of their benefit and value to the business. Ultimately, the goal is to optimize the life of each asset while considering its long-term impact. For the most effective use of assets, your initial asset management plan should consist of five basic steps. These include identifying current assets, describing their current condition, determining their expected life, and determining their value.
Asset management services often charge annual fees for services, which can vary greatly from company to company. Some charge only a small fee, while others charge a percentage of profits. In addition to fees, asset management companies often bundle other services, such as insurance policies. This way, their fees can be affordable.

Systems used in asset management

A number of asset managers develop a specific system to assist them in this process, It is a framework based on a number of business software and applications that focus on optimal asset management. This system explains a number of important factors for the asset manager: Such as the real returns that will be returned through those assets, in addition to identifying risk factors and balancing between them and the best planning methods. It also monitors the performance and level of operation of those assets throughout the life of the asset. The most famous programs and systems used in the management process are Asset panda, Ivanti, Inv Gate, and Go Codes.

Benefits of using these systems

By using asset management systems, asset managers can save a lot of time, because these systems perform repetitive processes automatically instead of having to do them manually each time. These systems also help increase the management team’s focus by relieving them of fatigue in these operations and thus saving their efforts for other useful and critical activities. It also extends the life of the assets themselves. It helps asset managers meet all asset owners’ expectations regarding achieving profits and providing the best service, while at the same time maintaining the sustainability of the organization’s system and its human and intellectual resources. Finally, these systems achieve results beyond expectations in cases of emergency or sudden dangers, because they will not fall prey to human feelings such as anxiety, fear, and inability to control.

Understanding Asset Classes

When you trade, you trade financial assets of one kind or another. There are different classes, or types, of assets – such as fixed income investments - that are grouped together based on their having a similar financial structure and because they are typically traded in the same financial markets and subject to the same rules and regulations.

There’s some argument about exactly how many different classes of assets there are, but many analysts commonly divide assets into the following five categories:

1- Stocks, or equities - Equities are shares of ownership that are issued by publicly traded companies and traded on stock exchanges, such as the NYSE or Nasdaq. You can potentially profit from equities either through a rise in the share price or by receiving dividends.

2- Bonds, or other fixed income investments (such as certificates of deposit – CDs) – Fixed-income investments are investments in securities that pay a fixed rate of return in the form of interest. While not all fixed income investments offer a specific guaranteed return, such investments are generally considered to be less risk than investing in equities or other asset classes.

3- Cash or cash equivalents, such as money market funds – The primary advantage of cash or cash-equivalent investments is their liquidity. Money held in the form of cash or cash equivalents can be quickly and easily accessed at any time.

4- Real estate, or other tangible assets – Real estate or other tangible assets are considered ‌an asset class that offers protection against inflation. The tangible nature of such assets also leads to them being considered as more of a “real” asset, as compared to assets that exist only in the form of financial instruments.

5-Futures and other financial derivatives – This category includes futures contracts, the forex market, options, and an expanding array of financial derivatives.

Steps followed in asset management

The first thing an asset manager does is evaluate the current state of the assets themselves, what are the needs of those assets, and what support methods can be used to develop them, in addition to clarifying the portfolio purposes of the assets. It is then determined whether the current condition of the assets will help achieve the organization’s financial objectives, using rigorous research and analysis tools. After that, the feasibility of future endeavors is investigated, and whether there is a need to obtain new assets and expand through current assets. One of the most important management steps is analyzing the life cycle of those assets. The importance of this step lies in clarifying the efficiency of all current assets, in addition to clarifying the cost of maintaining them. Then the asset manager identifies all the risks that could affect those assets, whether directly or indirectly. At the same time, the assets’ depreciation rate and the extent of their general impact must be determined. The last thing that is done in the asset management process is to determine the expected life of each asset, its recoverable value, and what are the best strategies used to get rid of it.

ADIG & Assets Management services

To transform today’s realities into tomorrow’s returns, particularly in today’s complex market where even seasoned investors face challenges to stay informed, monitor their investments, and respond to rapidly changing conditions. You need a partner who puts you first-with a thorough understanding of you, your goals, and your potential. When you invest with us, your success is our passion. Our knowledge, your knowledge. An enduring partnership, underpinned by a deep responsibility. Discover our company’s services and achievements The ADIG team is constantly bringing you ideas that no one else can turn into compelling opportunities- we adapt them according to your needs. Cultivate a long-term partnership built on conviction, sustainable results, and shared success over time. For investors who want to free themselves from the need for constant monitoring of asset and portfolio allocation, our team provides access to professionals whose skills in risk profiling, institutional asset allocation, fund management selection, and investment policy development can help you navigate a constantly changing environment.

ADIG asset management solutions

Customized to meet the needs of you and your business.
Fee-based so advisors have a vested interest in their clients’ success.
Strategic to reflect the dynamic nature of the market - and your life.
ADIG offers a depth and breadth of investment capabilities covering all asset classes that broadens your choice for diversifying your portfolio, enabling asset allocation decisions to meet investment objectives.

Money Market

Rigorous credit and risk management, combined with access to ADIG resources and expertise, help us deliver the most effective short-term cash management and fixed income solutions. We employ our broad range of strategies and collaborate with our clients to meet their expectations.

Alternatives

Our broad spectrum of alternative investment solutions has been specifically designed to help investors achieve real returns and add diversification to portfolios, with strategies spanning real assets, private equity & credit, liquid alternatives, and hedge funds.

MULTI-ASSET SOLUTIONs

Since the launch of our first multi-asset fund, we have worked tirelessly to address our clients’ needs by creating portfolios that access the opportunities and overcome the challenges in an increasingly complex and interconnected world.

Equity

Our equity expertise is founded on deep resources across regions and sectors, and a commitment to nurturing the brightest talent. Delivering consistent investment results across a broad range of actively-managed equity strategies is at the heart of everything we do.

Fixed Income

Our framework for fixed income diversification seeks to help investors generate income and reduce overall portfolio volatility.

Conclusion

We at Abu Dhabi Investment Group provide various investment services and products that are compatible with the principles of Islamic Sharia, including managing investment funds in various asset classes and managing private investment portfolios. The group adopts a strategy of diversifying investment options by providing innovative investment products and solutions that suit the needs of various segments of investors.