What are the functions of asset management company?

Answer 1

What is an Asset Management Company and What are Its Functions?An asset management company (AMC)is a legal entity that conducts a professional activity on the management of assets of collective investment institutions (CII) based on the license issued by the Securities and Stock Market State Commission of Ukraine.

An asset management company:

• establishes CII;
• places CII securities; engages agents that place securities among the investors;
• exercises management of CII assets; after the money has been transferred to the CII's account, the AMC directs them to the purchase of assets with the aim to create the portfolio with the structure of the given CII specified in its Investment Declaration;
• specialists of its analytical department analyze the markets of securities, real estate and other assets, the instruments of which form a part of the CII's assets;
• specialists of its investment department are looking for new objects of investments;
• specialists of its finance department perform daily revaluation of assets, draw up contracts on purchase and sale of assets, compile reports for government bodies that oversee and regulate the activities of AMC;
• carries out routine activities of CII.

Vikas Chhajed (MBA, Finance)

e-mail id-- vikas007chhajed@yahoo.com