Question

(A)What is the Asset and Wealth Management?

(B)What are the characteristics of Asset Management and Wealth Management?

(C)The situation of Asset and Wealth Management Industry in Hong Kong.

(D)The situation of Asset and Wealth Management Industry in Singapore.

(E)Compare Hong Kong and Singapore Asset and Wealth Management Industry.

Answer 1

(A)What is the Asset and Wealth Management?

Asset management is the systematic process of managing the assets of a person or company such that the value of the assets can be maximized. This is the function of a financial institution. They try to maximize the value of the assets like stocks, bonds and other investments. Asset management is a part of wealth management. Wealth management includes managing all investments, assets, finances etc such that the wealth of the individual or the company is maximized. It is much broader than asset management. Wealth management aims at preserving the wealth that has been ascertained while asset management concentrates on maximizing the asset value.

(B)What are the characteristics of Asset Management and Wealth Management?

The major characteristics of Asset Management are:

a) The financial institution should have maximum flexibility i.e. they should be able to modify their plans o maximize the value of the assets with any changes that may occur in socio-economic, political and business environment.

b) The asset management should carry out its processes in a transparent manner. The financial transactions should be recorded in a proper manner.

c) The various assets which have to be managed in such a way that the strategies have to be cohesive with each other.

(C)The situation of Asset and Wealth Management Industry in Hong Kong.

Due to the relation of Hong Kong with China, most of the asset and wealth management firms in Hong Kong are Chinese firms.

(D)The situation of Asset and Wealth Management Industry in Singapore.

The Asset and Wealth Management industry in Singapore are more widespread in terms of variety of companies involved. The main reason for this is the consideration that Singapore is the gateway to South Asia.

(E)Compare Hong Kong and Singapore Asset and Wealth Management Industry.

The Asset and Wealth Management firms are more in Singapore than in Hong Kong as people believe that Singapore is the gateway to South Asia. Moreover, the companies and regulations in Singapore are easier to invest and they encourage investment while those of Hong Kong are not encouraging. It is comparatively difficult to be a part of the asset and wealth management industry in Hong Kong than in Singapore.