Asset management explained

The term asset management is often used to refer to the investment management of funds, whilst the more generic fund management may refer to all forms of institutional investment as well as investment management for private investors. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as wealth management or portfolio management often within the context of so-called “private banking”.

Investment management is the professional management of various assets (shares, bonds etc) to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts.)

The provision of investment management services includes elements of assets selection, stock selection, plan implementation an ongoing monitoring of the investments. Investment management is a large global industry in its own right is responsible for caretaking of millions of dollars, euro, pounds and yen. Coming under the remit of fund managers many of the world’s largest companies are at least in part investment managers and employ millions of staff and create billions in revenue.

As an asset management business, Madison asset Management Company limited (MAMco), provides services to institutions and individuals. Services to individuals are mainly done through the Madison Unit Trust fund which is a collective investment scheme. A unit trust is a pooled investment vehicle, licensed by the Securities and Exchange Commission. It combines the capital of a large number of investors and then invests into selected stocks, bonds or other securities. It is managed by a professional fund manager who is better positioned to make wise investment decisions on behalf of investors.

Products under the unit Trust include the following:

• Madison Money Market Fund
This fund invests in a portfolio of short term money market instruments and aims to provide an above average return while protecting capital value.

• Madison Balanced Fund
This invests in equities and money market instruments in order to allow for a long term growth and regular income.

• Madison Equity Fund
This fund invests in carefully selected stocks listed on the Lusaka stock exchange, which have long term growth potential.

• Madison global fund

This fund invests in foreign currency denominated portfolio of money market instruments providing capital preservation and regular income.

Other products in the pipeline include the Madison property fund and Madison diversified global equity fund.

The company will also start to provide stock broking services as soon as licensing requirements with the Lusaka stock exchange are completed.

The current staff numbers stand at 5, including the CEO. Two are in the Unit trust, one in the Stock Broking and one in Investment Management.

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