Understanding What is Asset Management
Asset Management can be defined as the strategic practice of buying, selling, and managing investments to enhance wealth over time while aligning with specific risk tolerances. Experienced financial advisors create a strong asset management strategy that helps their clients stay afloat during tough times.
The primary objectives of asset managers are to maximize the value of investment portfolios while effectively managing risk. According to a 2023 report by McKinsey, it is estimated that if an asset manager makes a similar investment in technology, they can increase the efficiency and operational performance of the client’s portfolio by 30%.
A key aspect of asset management is understanding clients’ risk tolerance, which is critical for tailoring investment strategies. For instance, a retiree relying on portfolio income typically has a lower risk tolerance, while a younger, more aggressive investor may seek higher-risk opportunities.
Asset managers assess these types of profiles to craft personalized strategies that meet clients’ financial goals. They invest in a variety of assets such as stocks, bonds, real estate, commodities, alternative investments, and mutual funds.
Asset managers conduct rigorous research that utilizes both macro and micro-analytical tools, including statistical market trend analyses and detailed reviews of corporate financial documents. This comprehensive approach enables asset managers to make informed decisions that help increase the value of assets and align with clients’ objectives.
Types of Asset Managers
Challenges Financial Services Face While Developing an Asset Management Strategy
Financial services are navigating complex challenges while devising a robust asset management strategy that caters to customers’ needs. These challenges include increasing market volatility caused by the global COVID-19 pandemic in the economy. Adding to these challenges, asset managers are finding it extremely difficult to cater to continuously changing customer expectations.
These challenges have created a rising demand from asset managers to create accurate reporting and draw analytics. With dynamic changes in regulatory policies, asset managers find it difficult to focus on investing in new assets and adapt faster at the same time.
To meet the challenges, asset managers have adopted various technologies to enhance order management, risk management, and fund analytics. Out of the technologies they have implemented, the adoption of legacy and complex architectures has been on an all-time rise. However, these architectures prevented the asset managers from controlling the increased funding costs, as they are unable to predict any sudden increase in interest rates.
These legacy systems have also hindered asset managers from facilitating efficient settlement processes and precise cash management workflows for their clients. These outdated systems create workflow inefficiencies and contribute to data silos, increasing costs and complexity.
This led to asset managers managing their data manually, which led to lengthy and complex data pipelines, inaccurate analytics, and higher chances of making errors. These financial services challenges have led them to gravitate towards solutions that can help them create modern asset management strategies. Asset managers also require a solution that helps them remain competitive and adapt quickly to changing financial conditions.
How Does Snowflake AI Data Cloud Help Create an Effective Asset Management Strategy?
Snowflake AI Data Cloud is revolutionizing asset management strategies for financial services companies. With its advanced technology and robust data management capabilities, these companies can leverage this cloud platform for effective data ingestion and sharing.
Snowflake allows asset managers to integrate internal customer data with third-party market data and data from partner applications and data warehouses. This unified view of data allows financial services organizations to store all their data on a single platform that is accessible to stakeholders, customers, and employees. This AI Data Cloud platform facilitates asset managers to create security databases that support essential operations workflows.
Snowflake data cloud platform enhances collaboration that facilitates asset managers to efficiently perform net asset value (NAV) calculations, portfolio performance analyses, and comprehensive reporting. Snowflake’s multi-cluster concurrency architecture allows asset managers to migrate their workloads and manage them seamlessly. These workloads can range from data engineering to quantitative research and investment analytics.
The Financial Services Data Cloud of Snowflake further enhances asset management workflows, optimizes operational efficiencies, and creates a seamless investor experience. Asset managers can access up to 1,800 datasets to provide data-driven decisions to their clients. The data cloud platform can easily integrate with workflow tools like S&P Global, FactSet, and Refinitiv. This data collaboration facilitates asset managers to improve their overall asset management strategy effectiveness.
Snowflake also prioritizes security and governance, allowing financial services firms to protect and manage their client portfolio, reference, market, and risk data. These governance policies allow the asset managers to comply with stringent compliance controls.
Snowflake’s interconnected and global network fosters seamless integration with industry-leading investment management solutions, enabling asset managers to connect effortlessly with stakeholders and customers, enhancing their asset management strategies.
Why Choose Kasmo to Strengthen Your Asset Management Strategy?
As a premier services partner of Snowflake, Kasmo specializes in empowering clients by eliminating data silos and streamlining data architecture. Our experts also help financial services firms maximize the value of their data through our accelerators leveraging Snowflake. Our expertise facilitates global financial firms to integrate data and workloads seamlessly at scale, enhancing asset management strategies.
With a team of over 250 global consultants, including more than 50 certified Snowflake professionals and advanced data engineers, we provide the knowledge and experience necessary to elevate the capabilities of your data. Kasmo’s consultants possess expertise in both SnowPro Core and advanced certifications, which ensures financial services receive full support tailored to their needs.
Kasmo’s innovative Snowflake accelerators are designed to optimize your data workloads and transform how you derive value from your data. By leveraging these accelerators, asset managers can enhance their analytical capabilities, streamline operations, and drive better decision-making.
Choosing Kasmo will help you enhance your asset management strategy through effective data integration and management. Let us help you harness the power of Snowflake to simplify workloads, enabling you to navigate the complexities of the changing financial situations.
