Asset management Account

Definition:-

A single account at a brokerage or bank which includes both banking and brokerage services. Most asset management accounts allow checking, a debit or credit card, automatic transfer of excess funds into a money management account, and margin loans..

Explanation:

An account at a bank or other financial institution that allows the account holder to place money for both banking and investment services. When money is placed into the account, it is automatically placed into a money market account, which carries a higher interest rate than normal checking or savings accounts. The account holder can then direct the money to various banking and investment services. Also called central assets account

Features:

1. An investment account combined with the convenience of an interest-bearing checking account.
2. AMAs generally offer check-writing and ATM privileges, credit cards, direct deposit, and automatic transfer between accounts, as well as access to reduced-rate loans and other perks. There are usually annual fees and minimum account requirements.
3. AMAs are offered by many brokerage firms and mutual fund companies, and are also known as central asset accounts (CAAs) or cash management accounts (CMAs).
4. The Valet Account offers the investment options of a brokerage account combined with many bank-like services.

Advantages:

All-in-one asset management accounts provide the financial advantages of---

1. Convenience: Through a single account, one can buy and sell securities, pay bills, write checks and make
2. Ease of Consolidation When you consolidate cash management and brokerage needs into one account you can avoid managing multiple relationships with various financial institutions.
3. Improved Reporting:  one will receive one monthly statement that shows the value of your investments and monthly expenditures itemized by category.
   To best serve your needs,
4. An account at a brokerage house or other financial services institution that combines checking account features and the ability to make investments including buying stocks, bonds, and other investments.

Mechanism

The management of a client's investments by a financial services company, usually an investment bank. The company will invest on behalf of its clients and give them access to a wide range of traditional and alternative product offerings that would not be to the average investor:
1. The expense of this service generally restricts it to high net-worth individuals, governments, corporations and financial intermediaries. This includes such products as equity, fixed income, real estate, agriculture and international investments.

2. When individuals deposit money into the account, it is placed into a money market fund that offers a greater return that can be found in regular savings and checking accounts. The added benefit to individuals is that they can do all of their banking and investing at the same institution instead of having a bank and brokerage account at two different companies.

Type

1. Managed Account — a new style of managing and investing! Broco financial institute  introduces a unique service in the field of asset management services — Managed Accounts which give a way for efficient and mutual cooperation between the Investor and the Manager during the course of online trading in the financial markets and asset management in particular. Its Features:
• Managed Account is the trading account constituted of one or several Investors’ accounts where trading is conducted by a professional Manager.
• Manager’s duty is to manage the Investors’ aggregate funds and to ensure that profits and losses will be distributed among the members of the
• Managed Account in proportion of their investments. By implementing this system we sought to introduce a balanced and convenient asset management solution.
• Managed Accounts represent a convenient financial instrument:
• for Investor because they simplify investment procedure while minimizing the risks;
• for Manager because ensures funds management is comfortable irrespectively of its volume.

2. The Valet Account -- offers the investment options of a brokerage account combined with many bank-like services. Its Features
• Convenience -- Through a single account, you can buy and sell securities, pay bills, write checks and make ATM deposits and withdrawals while earning rewards points by using the Visa® Debit Card.
• Ease of Consolidation  When you consolidate cash management and brokerage needs into one account you
  can avoid managing multiple relationships with various financial institutions.
• Improved Reporting   You will receive one monthly statement that shows the value of your investments and monthly expenditures itemized by category.

Challenges

Although the Asia Pacific region boasts many fundamentally attractive markets for asset managers, the industry is not immune from global asset management challenges common in other parts of the world. Depending on the territory, these can include growing levels of competition, revenue pressures, regulatory uncertainty and investor skepticism.

1. Firms across the region are facing a range of local regulatory developments.
2. International regulatory initiatives are adding uncertainty and cost inflation
3. Investors are becoming more demanding, and some firms are struggling to expand their revenues
4. Asset management firms are developing new products and generating investor interest through enhanced marketing and communications
5. Despite increased outsourcing, many asset servicers are struggling to turn a profit
6. Some firms are trying to overcome established distribution patterns, often looking overseas.
7. While there is no standard approach to foreign expansion, high-growth markets remain popular options

Conclusion

The asset management industry of today is marked by increased competition and growing customer demands for transparency – all set against the backdrop of a volatile market. As firms grapple with business issues such as product innovation, evolving fee structure and industry consolidation, they also find themselves needing to devote more time than ever to managing regulatory demands.