Superior asset management is a method, in which the asset management processes can be handled in a superior or high quality mode. Private investors can invest in superior asset management plans usually through investment agreements or collective investment plans like mutual funds.
About Superior Asset Management
Superior asset management is a better method of asset management, which is being followed by a large number of asset management companies around the world.
Superior asset management schemes usually deal with stocks or shares, bonds, commodities, and real estate. These plans ensure minimum exposure to risk.
Asset management is regarded as a passive investment simply because in a number of instances it is seen that the decision regarding the buying and selling of mutual funds are taken by the asset managers on behalf of their clients without consulting them.
The success of superior asset management is entirely dependent on the asset managers. If they can achieve a profit from the passive investment schemes, which is more than the expected normal return from active investments, then it is proved that the asset managers are really skillful or superior.
The superior asset management firms, which are regarded as the most prosperous asset management firms in the world are those that are totally distinctive in nature from the insurance companies and banks.
A superior asset management firm quantifies the return on a portfolio as more than the rate, which is free of risk in comparison to the overall risk involved in the portfolio. This type of firms always focuses on the uses of various financial models like the Capital Asset Pricing Model (CAPM).
It has been witnessed that the most productive performances and the most efficient business plans have been generated by the independent asset management firms.
Functions of Superior Asset Management Firms
The functions of superior asset management firms can be categorized into the following types:
Recruitment of professional and certified asset managers
Research on asset categories and single assets
Sales and marketing
Preparing reports for the customers