Question

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1. a) What is an Asset Management Company ?

                  What may be the products that it offers ? Describe each.

    b) In terms of Capital market / secondary market: what purpose does an

            asset management company serve? Give an example of an existing

            asset management company, with its structure.

    c) Present some statistics and comparisons regarding the growth of Asset

           management companies.

Answer 1

A Asset management Co

Asset management company are specialized financial services company that help clients in pooling different asset classes and preparing of a investment class of product .

Majority of the mutual funds are backed by a parent AMC company which manages at its backend operations.

As such all the financial parameters of the pooled collection of securities area managed by the AMC on behalf of their clients and the clients do not need to bother about the technical details of all the back end operations and investing details

They prepare tailor made products for the clients as per their risk appetite and serve the one which best suites the requirement

Services of the Asset management Company

No	Service	Description
1.	Issuing pooled securities (Mutual funds)	The AMC analyses the various types of investment class or vehicles and collect them in various proportions in weight to a mutual fund as per the requirement of the clients.
2.	Acts as Fund houses	They hold the secuirites and asset classes on behalf of the clients and as such they are the main holing fund houses in opeartions.
3.	Cash Management& Liquidity Mgmnt	To ensure the liquidity needs of the clients , cash & liquid asset based management servies are offered by various AMCs
4	Global “Multi-asset-x” products	Multi / Diverse collection based products having global asset classes are also offered by global AMCs
5	Real Estate Products	Real estate investing in debt securities of different risk and return ratings are offered by the AMCs
6	ESG and Sustanability investing products	Investing based on Environmental Social and Governance pararmets for sustainable long term capital appreciation and growth are offered by the amc s

B The following are the services in capital / secondary market

No	Service	Description
1	ETF creation and listing	Creates Exchange Traded funds which are collection of different asset classes , and are traded actively on the exchanges .
2	Exchange Selection	Selects the exchange for the listing of ETF securities , based on the volatility and other factors
3	Risk Management	Actively manages the risk by tracking the Beta and volatility of the market in order to protect the capital of the investors
4	Buy side operations in market	Operates in only Buy side operations on majority of the asset classes as AMCs a cannot short sell using clients funds

The of “UBS- Glob. Asset Management Co Division “ has the following operational teams

· Sponsor – Brings capital for the business . Banks also acts as Sponsor Bank for an amc

· Fund Manger- Person liable to manage the assets actively

· Trustee- A group of participants who oversee the operations in order to ensure fairness and transparency

· Auditors- Does internal as well as external audits of the financial performances e

· Transfer Agent – mainly functions like the registrars in the company . Manages disbursement activities .

c.

In order to look into the growth of an AMC , the assets under management YoY (AUM) is taken into consideration

Assets under management (UBS) bill.USD
Year	AUM	Growth %
2020	9,96,554	1.11%
2019	9,85,642	3.49%
2018	9,52,366	1.86%
2017	9,35,016	2.16%
2016	9,15,215