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Using asset management companies for overseas investment

If you have some spare capital, investing, whether that involves property, stocks and shares or bonds, is an increasingly viable option for attempting to improve your financial position.

Thanks to changes in technology and regulations, what was once the preserve of the extremely wealthy is now accessible to more of us than ever before. All over the world, private individuals are investing their money in a variety of ways, which is also helping to keep the wheels of the global economy turning.

Some are tempted to go it alone and enter the financial markets using their own knowledge. But although research and learning more about the financial markets is always an advantage, when it comes to risking your hard-earned money, most of us prefer to increase our chances of profit by engaging the services and advice of experts.

By relying on the contacts and experience of professionals, you can often avoid many of the costly pitfalls that can occur in the world of investing, and this is particularly the case when you are considering an overseas investment.

Asset Managers Can Help

Taking a professional approach to asset management and engaging the services of the experts can be an effective way to handle your overseas investments.

An Asset Manager is a company or individual delegated by the investor to handle the management of their investments. A good asset management company will typically rely on a variety of specialists in the area of investment, who will be able to bring their expertise to bear to help you to maximise your profits.

A good asset manager will take their responsibility to select and manage investments for their client seriously, taking account of your investment goals, and ensuring that your assets are correctly controlled and managed on a day to day basis.

Asset Management versus Traditional Brokers

The alternative to using an asset manager is to use an investment broker on a transactional basis. For some overseas investors, this is an adequate way of managing their investment portfolio, but it has some disadvantages.

A typical broker is paid through commission awarded every time you make an investment trade. So, their main focus is to ensure that you make as many trades as possible, not in ensuring that your overall investment portfolio is profitable.

By contrast, an overseas asset management company is usually paid through receiving a share of the value of the assets they control. This means that their profits depend on producing good returns for their client, so both client and asset managers are on the same page.

The best asset managers form a profitable partnership with their client that is mutually beneficial.

The Importance of Local Expertise

Getting involved with financial markets can be a daunting prospect for those who are new to it, or who don’t have a depth of experience in this area, and these difficulties are increased significantly when the investments you are considering are based in other territories or markets with which you are not familiar.

The advantage of using an asset management company is that they will usually have a depth and wealth of expertise that will enable you to navigate the world of finance, along with considerable experience of operating in particular sectors and geographic regions.

Local Knowledge in Overseas Investment

While investing overseas is increasingly popular, it brings with it a higher degree of risk than investing in your own country. For example, one of the most popular investment areas in the world is the Middle East but investing in this territory involves getting to grips with a range of laws and regulations with which you are unfamiliar, not to mention the cultural and societal differences.

Al Masah Capital is a good example of a company that can offer in-depth local expertise to overseas investors, helping them to navigate complex issues such as taxation and regulation.

Resource Advantage

Asset management companies also have access to a range of resources that the individual investor doesn’t have. A good asset management firm will be able to use the latest financial research, analytics and financial modelling data to maximise the success of your investments.

Investing overseas is an increasingly viable option in the interdependent modern global economy, but like any form of financial commitment, it should not be undertaken lightly.

Using an asset management company to manage your overseas investments is often a good way to harness the skills and local knowledge of experts to enable you to reach your financial goals.

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