Asset management process

Peter Haenni

• 1 min read
Asset management process
Process map auto generated by the ProcessHorizon web app

Asset management involves managing and investing the assets of institutional and individual investors, such as pension funds, insurance companies, and high-net-worth individuals. Asset managers typically manage a portfolio of investments, such as stocks, bonds, real estate, and other assets, with the goal of maximizing returns while minimizing risk. They use a variety of strategies, such as diversification, active management, and passive management, to achieve these goals.

Asset management processes:

  • Analyze investment goals and preferences of clients
  • Develop investment strategies based on market research and analysis
  • Select appropriate investment vehicles based on defined strategies
  • Monitor investment performance and adjust strategies as needed
  • Communicate with clients about investment performance and strategy changes

An Asset manager should provide investment advice and research to clients and help customers manage their financial needs and achieve their financial goals.

A crucial part of any job description should be a job related process model with a visual process map illustrating how value is created for the client and what contribution is made to the organization.

Conceivable key performance indicators (KPI's) for an Asset manager:

  1. Return on investment: A high ROI indicates effective investment management.
  2. Asset under management: A high AUM indicates a large and successful investment portfolio.
  3. Portfolio turnover rate: This KPI measures how frequently investments are bought and sold within a portfolio.
  4. Risk-adjusted return: A high risk-adjusted return indicates effective risk management.
  5. Client satisfaction: High client satisfaction indicates strong client relationships and effective communication.
  6. Compliance adherence: High compliance adherence indicates effective risk management and adherence to legal and regulatory requirements.

These KPI's can be used to evaluate an asset manager's overall performance and effectiveness in managing investment portfolios for clients.

The ProcessHorizon web tool is a fast-track intuitive SIPOC notation based modeling tool providing instant visual process maps from your end-to-end process model input on three decomposition layers stored in a repository for standard and ad-hoc reporting.

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