Asset management is the direction of all or part of a client’s assets or resources by a financial services institution, usually an authorized investment bank, or an authorized & qualified individual. Institutions offer investment services along with a wide range of traditional and alternative product offerings. Asset management refers to the management of investments (i.e. cash, real estate, equities, art collection, etc..) on behalf of the owners of these investments. The process essentially has a dual mandate – appreciation of a client’s assets over time while mitigating risk (i.e. market timing).

The role of an asset manager consists of:

  1. Determining what investments to make, or avoid, that will grow a client’s portfolio. Rigorous research is conducted utilizing both macro and micro analytical tools. This includes statistical analysis of the prevailing market trends and interviews with company officials;
  2. And anything else that would aid in achieving the stated goal of client asset appreciation.

The Asset Manager will usually invest in products such as equity, fixed income, real estate, commodities, alternative investments and mutual funds.

Research from PwC predicts that global assets under management (AuM) will rise to around $101.7 trillion by 2020, from a 2012 total of $63.9 trillion. This represents a compound annual growth rate (CAGR) of nearly 6%.

The report, Asset Management 2020: A brave new world, also finds that assets under management in the SAAAME (South America, Asia, Africa, Middle East) economies are set to grow faster than in the developed world in the years leading up to 2020, creating new pools of assets that can potentially be tapped by the asset management (AM) industry. However, the majority of assets will still be concentrated in the US and Europe. Global AuM growth will be driven by pension funds, high-net-worth individuals (HNWIs) and sovereign wealth funds.

The recent positioning by Saudi Arabia’s Public Investment Fund (PIF) to deploy over $1.0 billion to invest in startups and small-medium enterprises (SMEs) instills further confidence in regional growth and validates the role of Asset Managers to drive economic growth.

Learn more about Ento Capital’s Asset Management services here [].