This is my experience of working and creating asset management systems in many companies. It is cross checked and proven by excellent results. It is universal and allow you dynamically manage different classes of assets including: equities, bonds and real estate. It is my system. The product of thinking and sharing my experience with other investment professionals from different parts of the world. It seems that we use very similar approach for managing assets. Moreover it gives you structured knowledge of valuation and managing risk management, sales and trading. Everything is included. Of course it is basic knowledge but it covers the whole basis of the ordinary asset management company. The foundations of the system is value investing. Then we go to the upper level and analyze how the investment company should work.
-value investing approach to valuation
-clarified principles of working including:
a) the flow of information is limited ("Chinese Walls")
b) strict division of labour
Then we cover different departments of the asset management company:
1) Research (RE)
2) Risk management (RM)
3) Trading (TD)
4) Sales (SA).
Each part is a complex structure itself but let's consider it.
RE is an important and vital part of the investment process. The valuation method is defines and definition of the value investing and its formula is given. Therefore, you have all tools for managing assets.
RM based on two main pillars:
First, limits that are based on investment declaration that is given from the client. Assets divided in three categories: equities, bonds and real estate. Then within these classes we divide instruments in four basic categories based on the risk. There are different approaches in dividing categories some do it based on the liquidity of the assets (equity, real estate) and some on liquidity and credit rating (bonds). I saw this approach in two companies where I worked and one european company.
Second, another thing is the limitation of the risks based on these classes and categories. This cover risk of the every assets and fit investment declaration of the client.
TD - trader make deals according to the information received from RM and RE. From RM goes information about limits and from RE goes information about upsides of the instruments. According to received data he makes deals on the market. The purpose of TD is to keep assets with maximum return. TD constantly monitor assets in portfolio and online market data to understand upside situation on the market. Market growths in steps principle less risky assets go first and more risky go last. So TD covers the whole growth of the market because upside of less risky assets disappear and more risky assets stay the same. So TD goes deeper.
SA - work on the strict client-company principles. The result is evaluated based on individual portfolio index. Therefore, SA gives client right evaluation of the performance based on the index of the portfolio.
Finally, we have a synergy of the company that is based on this principle. I want to mention that you have to write manuals for each department and for the company itself. So, this course covers basic principles. If enjoy this course let me know and I will make more defined solution to the problems that will appear because of the further complication of the system.
There are different system that are used for managing different assets. This video explains approaches used to trade these assets.
Is the main pillar of forecasting future price of the asset.
Risk management is the solution for managing how risky you can trade your asset. It doesn't limit market risk that is covered in research. It manages your or client risk possibility.
For some it is an only execution of trades. But it is more than that because it requires skills and knowledge of the trader to find the correct decision in limited time period.
Sales - not being uncomfortable explaining bad performance but in this system is the scientific explanation of the performance made.
Connect altogether. This system worths mentioning. So use it.
Andrei Li is the professional asset manager with experience managing mutual funds and managing different classes of assets such as Equities, Bonds and Real estate. He also has experience working with complex derivatives. At the moment he is entrepreneur working with different types of courses offline and online. He covers lots of subjects starting from investment valuation to the basics of living. In his opinion life is interconnected and every decision should be cross checked to get a right solution for the problem. His achievements includes:
-creation of multi asset management system for professionals from investment industry
-approach for making valuation of any asset based on Value Investing method
-proprietary option valuation model
Moreover, after having hard times living in a small village he created his own approach to living that explains everything and gives on scientific and solid understanding of life that gives patience, happiness and pleasure. Therefore, all his solutions comes from this fundamental understanding of the world.
Briefly about Andrei Li. He was born in Siberia in 1983, when he was 5 his parents decided to move to Sakhalin where he went to school. After 6 years of living there family decided to move to Saint Petersburg, where he spent 1 year. In 1993 his parents received an offer to live and work in a small village 80 km from Saint Petersburg and this offer was accepted. Andrei went to 4th class of the secondary school and was one of the worst performers in the school. On 7th class he decided to change his life and started living perfectly. The Bible was chosen as the main source of the living experience. Three months after reading he had severe psychological crisis that was past after one and a half years. In 8th class he become the best performer in the class and received a medal from the Chief of the School. And the reason for this outstanding and life changing result was the understanding of the world with fairness and rationalism that fit current world theories. In school he rethought many widely recognized theories and cleared a was for himself for years.
Then family moved to Saint Petersburg where he graduated from university for 3 years instead of 5. At that moment he already was the CEO at his own advertising agency that he successfully sold to young entrepreneurs. Prior that he also received big experience working for non profit organization where he wrote business plan and make valuation of investment projects.
Then he worked for Saint Petersburg exchange where he worked on futures contracts on oil, futures contracts on oil and gas tax rate and futures contract on export tax on gas and oil.
In 2003 he was offered a position of the business analyst at the big chain of hypermarkets "OK" where he build and defined business processes of the huge structure.
At the end of 2003 having good experience of working as business analyst he decided to mover further and he received a position of Managing Director of Industry and Construction Bank Asset Management Company at that he was only 21. He was responsible for managing assets with value of 25 million USD. At that time this amount was significant. Industry and Construction Bank in 2003 was the first bank in Northwestern part of Russia and was included in top 10 of the biggest banks of Russia. After a year three funds under his management become the best funds in Russia for 2004 significantly beating results of other funds with 37 percent difference for the equity fund. Bond and mixed find become the best in their own categories.
Then he decided to move to the new company created by the management of Industry and Construction Bank Asset Management Company. Company called Arsagera where he worked for 2 years with no significant result.
In 2006 Andrei was offered a position at Veles Capital investment company based in Moscow. For 6 months his salary increased three times buy 20% each time and then the whole number was multiplied twice. It happened because of closure of several projects with very hight return. For 3 years working for Veles Capital he not only enjoyed the company and the people working for this great financial institution but brought and executed more than 17 projects with return higher than 100%.
In 2008 market collapsed and Andrei gave several interviews where he forecasted very long and painful crisis in Russia, currency rate as 100 RUR per one USD and this became truth in 2015. He also said that there is gonna be military conflict. As we see now Russia have indirect military conflict with Ukraine and US.
After that his decision was to study MBA. Andrei is the big lover of the Spanish culture and language. So, he received two offers from ESADE and IE Business School. Although ESADE gave a scholarship. Andrei's decision was to move to IE Business School where he got extensive knowledge of international business architecture.
Then in 2011 he moved back to Saint Petersburg where he was hired by the VKMD - it is a retail chain that was in need of Chief Financial Officer.
In 2015 Andrei started his own career and working at creating offline and online courses.