China’s asset management industry: mapping the global landscape

2020 ◽  
Vol 21 (2/3) ◽  
pp. 93-96
Author(s):  
Jeff Yao ◽  
Shaji Ravendran ◽  
Haiyang Zhang
Keyword(s):  
Financial Market ◽  
Capital Markets ◽  
Asset Management ◽  
Foreign Asset ◽  
Content Type ◽  
Overseas Investment ◽  
Management Institutions ◽  
The Uk ◽  
Asset Managers ◽  
Opening Up

Purpose The purpose of this article is to describe the globalization process of China’s asset management industry. Design/methodology/approach This article looks at the globalization of China’s asset management industry from a bilateral perspective. On one hand, it analyzes new measures promulgated in China to expand the opening up of capital markets and attract foreign asset management institutions. On the other hand, it gives an introduction on some advisable choices for Chinese asset management companies to invest overseas. Findings With the promulgation of the Shanghai Guidebook for Overseas Asset Management Institutions among other measures that further liberate China’s financial market, 2020 marks an important era for foreign asset managers. Besides, this article suggests that Luxembourg, Ireland and the UK are ideal European destinations for Chinese asset management companies to invest in. Practical implications This article aims to keep foreign asset managers updated of new rules regarding financial market liberalization in China and help them to expand business in Shanghai. This article also gives a brief introduction on the fund industry in Ireland, Luxembourg and the UK, to give those Chinese asset management companies which are considering overseas investment some inspiration. Originality/value Practical guidance from experienced lawyers in the practice of foreign investment and capital markets.

Performance of physical asset management using the analytic hierarchy process

2019 ◽  
Vol 37 (3) ◽  
pp. 327-345 ◽  
Author(s):  
Fawzeia Abdulla Al Marzooqi ◽  
Matloub Hussain ◽  
Syed Zamberi Ahmad
Keyword(s):  
Analytic Hierarchy Process ◽  
Asset Management ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Equal Importance ◽  
The Analytic Hierarchy Process ◽  
Physical Asset ◽  
The Impact ◽  
Hierarchy Process ◽  
Asset Managers

Purpose The purpose of this paper is to explore certain resources, capabilities and competencies needed to improve the performance of physical asset management (PAM). Design/methodology/approach The analytic hierarchy process (AHP) is used to select and prioritize the most appropriate factors for improving performance. A multi-criteria approach is used to analyze and compare the importance of 6 main criteria and 18 subcriteria identified from a survey of relevant literature. Findings The study revealed that not all factors are viewed as having equal importance in improving PAM performance, as three of the main factors attained greater importance among the six factors. Research limitations/implications This study explored the factors required for managing assets only within the third stage of asset lifecycle, that is, the utilization stage. It is recommended that future studies be conducted in such a way as to determine the importance of similar factors in the other stages of the asset lifecycle, or to identify new factors and add new criteria. Practical implications Knowledge of the differential impacts of the factors on the performance of PAM can impact asset managers and decision makers in their allocation of resources and focus their work on the highest-ranked rather than the lowest-ranked factors. Also, AHP used provides an effective mean for asset managers to identify priorities among decision criteria in their organization. Originality/value To date, no study has explored the impact of six combined factors on the performance of PAM. Previous studies have found that these factors each had equal importance. However, their relative ranking in practice and when they appear together have remained unrecognized.

Hong Kong Securities and Futures Commission (SFC) highlights operating, control and compliance deficiencies in asset management industry

2018 ◽  
Vol 19 (1) ◽  
pp. 63-68 ◽  
Author(s):  
Anne-Marie Godfrey
Keyword(s):  
Hong Kong ◽  
Asset Management ◽  
Service Providers ◽  
Governance Structures ◽  
Investment Fund ◽  
Extensive Experience ◽  
Investment Funds ◽  
Content Type ◽  
Best Execution ◽  
Asset Managers

Purpose To examine the nine common areas of non-compliance in managing investment funds and discretionary accounts, detailed in a Hong Kong Securities and Futures Commission (SFC) circular dated September 15, 2017, directed at SFC-licensed asset managers. Design/methodology/approach Discusses a July 2017 circular indicating the SFC’s general concerns and analyzing the following nine common areas of non-compliance cited in the September 15, 2017 circular: (1) inappropriate receipt of cash rebates giving rise to apparent conflicts of interests, (2) failure to follow investment-suitability and discretionary account mandates during solicitation, (3) failure to implement liquidity-risk management processes, (4) deficiencies in governance structures and fair-valuation procedures, (5) deficiencies in systems for ensuring best execution, (6) failure to safeguard fair order allocation, (7) inadequate controls for protection of client assets, (8) inadequate systems to comply with investment restrictions, and (9) inadequate safeguards to address market misconduct risk. Findings The nine examples of non-compliance provide a useful insight into key “problem areas” indicated to currently be of particular concern to the SFC. Practical implications All SFC-licensed asset managers would be well advised to revisit their internal governance structures and operational policies and procedures in order to ensure that they are compliant with applicable standards and requirements. Originality/value Practical guidance from a lawyer with extensive experience advising investment managers and advisers, fund administrators, trustees and other fund service providers on investment fund-related issues.

Portraits of five hedge fund fraud cases

2008 ◽  
Vol 15 (2) ◽  
pp. 179-213 ◽  
Author(s):  
Majed R. Muhtaseb ◽  
Chun Chun “Sylvia” Yang
Keyword(s):  
Asset Management ◽  
Hedge Funds ◽  
Hedge Fund ◽  
Investment Fund ◽  
Good Opportunity ◽  
Content Type ◽  
Fund Managers ◽  
Management Group ◽  
Fund Industry ◽  
Asset Managers

PurposeThe purpose of this paper is two fold: educate investors about hedge fund managers' activities prior to the fraud recognition by the authorities and to help investors and other stakeholders in the hedge fund industry identify red flags before fraud is actually committed.Design/methodology/approachThe paper investigates fraud committed by the Bayou Funds, Beacon Hill Asset Management, Lancer Management Group (LMG), Lipper & Company and Maricopa investment fund. The fraud activities took place during 2000 and 2005.FindingsThe five cases alone cost the hedge fund investors more than $1.5 billion. Investors may have had a good opportunity for avoiding the irrecoverable costs of the fraud had they carefully vetted the backgrounds of the hedge fund managers and/or continuously monitored the funds activities, especially during turbulent market environments.Originality/valueThis is the first research paper to identify and extensively investigate fraud committed by hedge funds. In spite of the size of the hedge fund industry and relatively substantial level and inevitably recurring fraud, academic journals are to yet address this issue. The paper is of great value to hedge funds and their individual and institutional investors, asset managers, financial advisers and regulators.

scholarly journals The normative evolution of corporate governance in the UK: an empirical analysis (1995-2014)

2019 ◽  
Vol 19 (5) ◽  
pp. 1015-1041 ◽  
Author(s):  
Stefanie Pletz ◽  
Joan Upson
Keyword(s):  
Corporate Governance ◽  
Longitudinal Data ◽  
Empirical Evidence ◽  
Financial Market ◽  
Data Set ◽  
Content Type ◽  
Market Growth ◽  
Implementation Model ◽  
Quantitative And Qualitative Research ◽  
The Uk

Purpose This paper aims to analyse normative corporate governance evolution in the UK between 1995 and 2014 against the benchmark of Organisation for Economic Co-Operation and Development (OECD) regulatory principles. Design/methodology/approach Methodologically, the authors conduct an empirical, longitudinal data set analysis of the formative years of UK normative corporate governance development between 1995 and 2014. We provide a qualitative discussion of the empirical evidence that links the type of UK regulatory corporate governance development to financial market growth thereby adopting a mixed approach based on quantitative and qualitative research methods. Findings The authors find that compared to the OECD model of corporate governance, the UK model is less rigid following a more self-regulatory approach based upon a “comply or explain” paradigm. Thus it is scored below corporate governance systems that follow a compulsory implementation model. However, even with such “low” tilt towards formal shareholder primacy norms, the UK has the best performing financial market. As a quasi-empirical study, the authors suggest that there are several historical and economic reasons for this, which together with a robust rule of law in the UK contribute to this performance – and the law especially the type or tilt is less relevant. Originality/value This is the first of its kind empirical, longitudinal data set analysis with qualitative elements that links empirical evidence to regulatory developments in the wider context of UK corporate governance evolution.

scholarly journals Business value of integrated BIM-based asset management

2019 ◽  
Vol 26 (6) ◽  
pp. 1171-1191 ◽  
Author(s):  
Mustapha Munir ◽  
Arto Kiviniemi ◽  
Stephen W. Jones
Keyword(s):  
Asset Management ◽  
Implementation Process ◽  
Business Value ◽  
Management Tool ◽  
Content Type ◽  
Geometric Data ◽  
Business Goals ◽  
The Uk ◽  
Am Processes

Purpose Currently, building information modelling (BIM) is largely seen as a 3D model, not as an information model or information management tool. This wrong perception of BIM and low interest in 3D asset management (AM) is one of the major reasons for the slow adoption by clients in the architectural, engineering and construction (AEC) industry. The purpose of this paper is to identify the techniques and strategies of streamlining AM systems for BIM-based integration, and how the information is captured from physical assets towards BIM-based integration for clients to derive value from BIM investments. Design/methodology/approach A qualitative case study strategy was used to study the strategic implementation process of integrating BIM with AM systems and the business value of BIM in AM by a large asset owner in the UK. Findings The paper identifies key strategies in the adoption of BIM-based processes by an asset owner, the implementation process, the challenges and the benefits attained. Several barriers were identified as the challenges of adopting BIM-based processes in AM: complexity and cost associated with BIM; irrelevance of 3D geometric data in AM processes; nature of asset ownership structure; managing the asset handover process; managing change within the organisation. Organisations will have to consider the following issues in streaming asset information with BIM: the development for a clear strategy prior to adoption; connecting the strategy to the business goals; and conducting the discovery exercise to identify organisational information needs. Originality/value The research addresses a significant gap in the development of techniques and strategies for asset owners to streamline BIM with AM systems and derive business value from such integration. The research context is a case study involving a large owner-operator in the UK that has been able to derive value from BIM systems in their AM processes. The key value of the paper is improving asset owners’ understanding of BIM in AM by demonstrating the implementation strategies, linkage to organisational objectives, challenges, value management process and business value of BIM in AM. Another contribution of the paper is improving the understanding of BIM, which is usually viewed as 3D models and that 3D geometric data do not have much value for AM tasks.

scholarly journals Private law and public regulation for investor protection in the asset management industry: aims and practices of transposing the UK model in China

2020 ◽  
pp. 1023263X2095837
Author(s):  
Dr Joseph Lee ◽  
Mr Yonghui Bao
Keyword(s):  
Asset Management ◽  
Common Law ◽  
Investor Protection ◽  
Duty Of Care ◽  
Fiduciary Duties ◽  
Legal Transplant ◽  
Regulatory Approach ◽  
Enforcement Mechanisms ◽  
The Uk ◽  
Asset Managers

The paper discusses how asset managers are regulated in the UK in order to provide investor protection and market confidence. Fiduciary duties and the duty of care in the English common law, statutory laws, the rules of the FCA, and other industry codes are examined to provide an explanation of the UK regulatory approach to the asset management industry. The paper then discusses the extent to which a legal transplant of the UK model to China may be feasible as the asset management industry is currently being reformed in China. Recommendations are made for China to develop an independent asset management industry, to provide more investment outlets for investors, and to have effective enforcement mechanisms of laws and rules to deliver market confidence and investor protection.

scholarly journals Sustainable built asset management performance indicators and attributes

2020 ◽  
Vol 38 (3) ◽  
pp. 508-522
Author(s):  
Justine Cooper ◽  
Angela Lee ◽  
Keith Jones
Keyword(s):  
Asset Management ◽  
Performance Indicators ◽  
Social Housing ◽  
Housing Stock ◽  
Housing Association ◽  
Content Type ◽  
Maintenance Work ◽  
Social Environmental ◽  
The Individual ◽  
The Uk

PurposeThis paper aims to identify key performance indicators (KPIs), and their corresponding attributes, required to successfully manage asset management sustainably in a built environment context. Improving the sustainability of existing housing stock is a major challenge facing the UK social housing sector. There is a lack of support to navigate the growing and often incongruent information relating to sustainable development and how to operationalise it. The problem is twofold; first, the current (single criterion) condition-based approach to maintenance planning constrains asset managers and does not fully address the social, environmental and economic aspects of sustainability. Second, the toolkits available for assessing the sustainability of housing are often generic and are time consuming and expensive to implement.Design/methodology/approachThis paper reports the findings of a participatory research project with a leading London-based housing association, using a series of landlord and tenant workshops to derive a set of attributes associated with KPIs to fully reflect the local requirements of the landlord and their interpretation of the sustainability agenda. Five KPIs are considered to be measurable, directly affected by maintenance work and independent of each other were identified by this landlord (comfort, running costs, adaptability, maintenance costs and community).FindingsThe resulting outputs, in a policy context, will provide a clear route map to social housing landlords of how to improve the sustainability of their housing stock with the additional benefits of addressing fuel poverty and carbon emission targets, whilst at the same time, help create and maintain housing in which people want to live.Originality/valueThe proposed approach is flexible enough to incorporate the individual requirements of landlords and be able to adapt to changes in government policy (local and central) in a timely, robust, transparent and inclusive format.

A game-theoretic model for roadway performance management

2014 ◽  
Vol 4 (1) ◽  
pp. 40-54 ◽  
Author(s):  
Hesham Osman ◽  
Mazdak Nikbakht
Keyword(s):  
Asset Management ◽  
Decision Makers ◽  
Theoretic Model ◽  
Theoretic Approach ◽  
Political Decision ◽  
Content Type ◽  
Road Users ◽  
Game Theoretic ◽  
The Impact ◽  
Asset Managers

Purpose – The purpose of this paper is to present a socio-technical approach to modeling the behavior of roadway users, asset managers, and politicians toward roadway performance and asset management. This approach models the complex interactions that occur between these agents in a complex system. Most modeling approaches in the domain of infrastructure asset management take a purely asset-centric approach and fail to address these socio-technical interactions. Design/methodology/approach – Interactions among political decision makers, asset management strategy developers, and road users are modeled using a game-theoretic approach. The interactions are modeled as a non-cooperative game in which politicians, asset managers, and road users are the main players. Each player is autonomous and aims to come up with the set of moves to maximize their respective level of satisfaction in response to other players’ moves. Multi-attribute utility theory is used to deal with multitude of players’ goals, and the Nash equilibria of the game are south out to develop appropriate strategies for different players. Findings – An illustrative example for a road network of a Canadian city is used to demonstrate the developed methodology. The developed methodology demonstrates how behaviors of various agents involved in the sphere of asset management impacts their collective decision-making behavior. Originality/value – The developed framework provides asset managers and political decision makers with a valuable tool to evaluate the impact of public policy decisions related to asset managers on road performance and the overall satisfaction of road users.

scholarly journals An uncertain, erratic story: the pandemic in the UK

2020 ◽  
Vol 16 (4) ◽  
pp. 549-555
Author(s):  
Irvine Lapsley
Keyword(s):  
Health Care ◽  
Risk Management ◽  
Asset Management ◽  
Best Practice ◽  
Content Type ◽  
Individual Account ◽  
Reform Processes ◽  
The Uk ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to study the pandemic from the perspective of the UK health-care system and risk management. Design/methodology/approach This paper follows a storytelling perspective. The author reflects on his experiences through the lens of research on health care and risk management. Findings The impact of the pandemic has been so massive that it has challenged the capacity of the UKs National Health Service. The political influences at work have not always promoted best practice in risk management and indicate blame-avoidance strategies by politicians. Research limitations/implications A single country experience of COVID-19. Practical implications There are major issues of asset management, of delays in decision-making, of supply chain problems and the need to reform processes of handling of crisis management. Originality/value This is an individual account of experiences of the pandemic.

A real asset management approach for Islamic investment in containerships

2020 ◽  
Vol 11 (1) ◽  
pp. 27-48
Author(s):  
Adam Abdullah ◽  
Rusni Hassan ◽  
Salina Kassim
Keyword(s):  
Asset Management ◽  
Profit Sharing ◽  
Content Type ◽  
International Shipping ◽  
Investment Appraisal ◽  
Debt Finance ◽  
Equity Finance ◽  
Management Institutions ◽  
The Impact ◽  
Islamic Investment

Purpose The purpose of this paper is to provide a real asset management investment appraisal of the performance of containerships as a primary segment within international shipping, to facilitate Islamic equity investment through a shipping fund. The objectives are to evaluate the risks and returns of shipping under the framework of Islamic equity finance, and to analyze the performance of investing in containerships over the long term, to appeal to retail and institutional clients of Malaysian asset management institutions. Design/methodology/approach Accordingly, the methodology adopts an investment analysis of a full population of historical data over a period of 20 years, to evaluate performance involving a maritime return on investment (MROI), internal rate of return (IRR), net yield and standard deviation measures of risk and return. Findings The findings reveal that while earnings are volatile in comparison to capital market expectations, unlevered, tax-free returns on containership investments outperform financial and other real assets. Research limitations/implications Shipping is a strong growth industry with about 84 per cent of global trade carried out by the international shipping industry. The problem is that many Islamic asset management institutions and investors have essentially no exposure to Islamic investment in international shipping. Practical implications However, shipping is a highly capital-intensive industry, and currently 75 per cent of ship lending has been conducted by European banks and financed on a conventional basis. Post-financial crisis, ship owners, ship lenders and shipyards have all been exposed to the impact of over-levered balance sheets and debt finance. There is a demand for alternative sources of finance. Social implications By communicating risk and reward more effectively, retail and institutional investors, as well as Islamic finance institutions, will realize that the social benefit of equity finance on the basis of profit sharing is more efficient at allocating investible resources than debt finance at interest, thereby increasing investment and economic growth. Originality/value The significance is that Islamic equity finance, rather than debt at the time-value of money, should enhance the development of international shipping.

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