How To Develop A Successful Asset Management Strategy

As a business owner, you want to protect your assets because they are the foundation of all that you have built. A smooth and profitable business requires efficient and proper management of your assets and this is where a good asset manager has a vital role to play. Put in simple terms, asset management can be defined as the management of investments on behalf of a client, with the assets invested across a broad range of both traditional and alternative products that would typically be unavailable to an investor on Main Street.

Asset management services are typically more expensive than your average banking service, so in general, they are restricted to individuals with a high net worth or corporations and even governments. If you were to choose to invest with an asset manager then your money would be placed into the type of money market fund that would deliver a higher return than that offered by regular savings and checking accounts. For a business owner who has enjoyed some success, securing a greater return on your assets is critical, both for the continued success of the business and for your own long-term financial benefit.

How To Develop A Successful Asset Management Strategy

The first thing you need to acknowledge about asset management is that there is no unitary approach. There are different aspects to asset management and there are different asset management strategies, depending on both the needs and risk profile of the asset holder and the approach taken by the investment management firm. Products offered range across investments in equities, fixed income, international investments and real estate, to name a few.

In considering asset management strategies, it is probably most straightforward to discuss specific asset management categories:

  • Equities: These are stocks or other security options representing an ownership stake in a company. Many equities are traded on stock markets, but private equity investments are also available and an asset manager can invest your money in firms that are not publicly traded.
  • Fixed income: This category of investments refers to an investment where the borrower has to make fixed payments on a predetermined schedule, with the principal amount repaid on maturity of the investment. An example would be government bonds or municipal bonds. Companies can raise finance with corporate bonds. Investors in fixed income do tend to be less risk averse than investors in other categories and are seeking a continuous and secure return on investment.
  • Real estate: Real estate investments have relatively limited liquidity compared to other investment categories and are also relatively capital intense, but they can represent a good long-term investment, especially for those planning toward retirement, and should be part of a diverse investment portfolio. An asset management firm can offer property funds or arrange group investments in real estate. Alternatively, investments in the real estate assets of companies may be available under some private equity funds.

Peter Briger is a good example of someone working in the asset management business. Principal and co-chairman of the Board of Directors at Fortress Investment Group LLC, he oversees operations at a group managing assets worth in excess of $51 billion. Learn more about Briger and his achievements by searching for Pete Briger’s documents online. Fortress Investment Group has more than 1,600 institutional and private clients globally and has acquired a strong reputation for its asset management services. Institutional Investor named Fortress as its Hedge Fund Manager of the Year for 2014. HFMWeek, a leading hedge fund news publication, named Fortress its Management Firm of the Year for 2014. Fortress has acquired a broad knowledge of the industries it invests in on behalf of clients and has a team of investment professionals, expert in their specific sectors.

If you are an entrepreneur interested in asset management, take the first step toward securing your assets by talking to an experienced and knowledgeable asset manager.