What is House organizational structure in Asset Management
All asset management
houses have different organizational structures, the purpose of this
topic is to describe the roles performed by a typical asset management
houses directors performed by a typical assets management houses
directors and staff , paying particular attention to the role most closely
affecting the core business of managing clients assets
- Chief Executive
Officer : Responsible for the over all management and direction of the
company , particularly in terms of building an effective and cohesive
team to manage the business
The fund management takes over all responsibility for the fund from an investment perspective, i.e. its performance, risk profile and dealing on the clients behalf .Day to day contact (e.g. Provide valuation of portfolios and other information) is generally carried out by a separate client services team. Fund managers are responsible for beating (i.e. achieving a higher return than) their bench mark (e.g. the Morgan Staley capital international world equity index, JP Morgan Salomon Brothers etc.) The fund manager will also often be responsible for ensuring that the fund has cash available when required to meet obligations (usually called the liability stream) of the fund (eg to pay pension entitlements, insurance claims etc.)
Fund management responsibility is usually carried out by senior investment staff with other , often related , roles, Generally the larger the client, the more senior the fund manger (who may also be know as the investment Director); thus the CIO may take on the investment directors role for a large pension fund mandate . Whereas a UK equity desk energy specialist might also take on fund management responsibility for a UK Equity OEIC.
House Policy on markets and stocks is reviewed at each investment departments morning meeting. This meeting is used to share information with regard to economics and market conditions, as well as trading and other activities planned for the day. In additions to their role as market and security, fund managers also take responsibility that orders are executed accurately, ie that the correct line of stock has been ordered, that sufficient cash will be available for settlement and sold responsible for stock certificates0 fund managers are also responsible for ensuring that all clients receive equal treatment, ie, stock are to be bought simultaneously across all similar funds.
The global equity market is generally divided I to regions of the world, each region having a dedicated desk and with specialization occurring in emerging markets. For example : French and German markets would be handled by the mainstream European desk, where as eastern European markets might b separately handled by an Emerging European Specialist . Each desks resources are roughly determined by the value of the funds for which they are responsible. For most UK based fund mangers, the UK Equity desk is usually the largest given the (unexplained by modern portfolio theory) large allocations made to the domestic market. UK equity desks can usually afford, in terms of resource, to have industry specialists (e.g. Finance, consumer goods etc) where as overseas desks, e.g. the European desk, may have country specialists.
Security research involves collating data from the vast quality of broker research provided, preparing house earning estimates and modeling the impact of changes on earning forecasts of economics news and changes in market consensus.
A valuable source of income can be obtained by lending securities owned by funds to other financial institution that needs to deliver a security that they do not own. This need can arise through errors being made when selling out of a position, or by speculators in the market deliberately selling short security that they do not own in the hope that the value of the security will fall, there generating a profit.
is responsible for all systems and data used by assets managers. Data
includes real time data and news, supplied by such vendors as
Bloomberg and Reuters, and historic data. Systems include back office
investment accounting (which is the prime record for the assets managers
holdings) orders management and dealing systems and fund analysis decision
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