Asset Management

What is Asset Management and advisory services?

Asset Management is to manage or advice on the allocation of a portfolio according to a pre-arranged strategy or within a certain agreed framework. Asset Management can be divided into to sub-groups. First is the traditional, where the manager acts as an adviser to the client who then makes the decisions regarding the structure of the portfolio. Second, we have what is called the discretionary Asset Management, where the client delegates the daily work, like monitoring, rebalancing and execution to the asset manager. Naturally the client and the manager agree on a framework and universe within which the manager has to act. This framework is individually tailor made according to the client’s needs and wishes. It could for instance be special risk limits, what asset classes are allowed in the portfolio, geographical constraints or concentrations limits. Sometimes mutual funds and discretionary asset management are labels alternative investments.  In both cases it is, to a large extent, the skills of the manager that in the end determine the return of the portfolio.

Asset managers often utilise what is known as model portfolios. A model portfolio consist of specific proportions of different financial instruments that is expected to give the best possible return. The managers who have different funds on the market will most likely use their model portfolios also in the discretionary management of the fund.

What services do we offer in Asset Management?

Falk & Partners, has actively chosen not to represent any single firm or bank. Doing so would have limited our universe of financial products and decreased our investment opportunities. Hence, we have the liberty to choose the best product at any given time, which is most suited to our clients’ wishes. As a result the portfolios of our clients may be markedly different compared with what an asset manager who only has access to his own companies’ financial products.

Avoiding the conflict of interest, we are free to offer you the most interesting products on the market and by doing so, optimise and construct our clients’ portfolios. This way of working independently might be taken for granted, but is actually far from the norm.

We have further advantages by being experts in other relevant areas bordering asset management. These are primarily Tax and Law. Our broad expertise gives us a possibility to analyse different structures such as Pension solutions, insurance and trusts. These kinds of structures have different tax and legal effects which greatly can enhance the post tax return of an investment. By having this competence in-house, we are able to analyse our clients’ tax situation before the actual asset management assignment is started.