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| title | chunk | source | category | tags | date_saved | instance |
|---|---|---|---|---|---|---|
| Asset management | 1/2 | https://en.wikipedia.org/wiki/Asset_management | reference | science, encyclopedia | 2026-05-05T14:13:38.787771+00:00 | kb-cron |
Asset management is a systematic approach to the governance and realization of all value for which a group or entity is responsible. It may apply both to tangible assets (physical objects such as complex process plants or manufacturing plants, infrastructure, buildings or equipment) and to intangible assets (such as intellectual property, goodwill or financial assets). Asset management is a systematic process of developing, operating, maintaining, upgrading, and disposing of assets in the most cost-effective manner (including all costs, risks, and performance attributes). Theory of asset management primarily deals with the periodic matter of improving, maintaining or in other circumstances assuring the economic and capital value of an asset over time. The term is commonly used in engineering, the business world, and public infrastructure sectors to ensure a coordinated approach to the optimization of costs, risks, service/performance, and sustainability. The term has traditionally been used in the financial sector to describe people and companies who manage investments on behalf of others. Those include, for example, investment managers who manage the assets of a pension fund. The ISO 55000 series of standards, developed by ISO TC 251, is the international standards for asset management. ISO 55000 provides an introduction to and requirements specification for a management system for asset management. The ISO 55000 standard defines an asset as an "item, thing or entity that has potential or actual value to an organization". ISO 55001 specifies requirements for an asset management system within the context of the organization, and ISO 55002 gives guidelines for the application of an asset management system, in accordance with the requirements of ISO 55001.
== By industry ==
=== Financial asset management === The most frequent usage of the term portfolio manager (asset manager) refers to investment management, the sector of the financial services industry that manages investment funds and segregated client accounts. Asset management is part of a financial company that employs experts who manage money and handle the investments of clients. This is done either actively or passively.
Active asset management: involves active tasks such as studying the client's assets to plan and look after the investments, all things are looked after by the asset managers, and recommendations are provided based on the financial health of each client. Active asset management comes at a higher price to investors because more work is involved. Passive asset management: assets are allocated to mirror a market or a sector index. Unlike active asset management, passive asset management is a lot less laborious. It is also less tailored, requires less looking after, and consequently is cheaper for investors. In recent decades, passive investment strategies such as index funds and exchange-traded funds have significantly increased in market share.(Vanguard report) Benjamin Braun suggests that, since American stock ownership is concentrated on few big asset managers which are very diversified and do not have a direct interest in the performance of the companies, this emerging "asset manager capitalism" is distinct from the earlier shareholder primacy.
=== Physical and Infrastructure asset management ===
Physical and Infrastructure asset management is the combination of management, financial, economic, engineering, and other practices applied to physical assets to provide the best value level of service for the costs involved. It includes the management of the entire life cycle—including design, construction, commissioning, operating, maintaining, repairing, modifying, replacing, and decommissioning/disposal—of physical and infrastructure assets. Operation and maintenance of assets in a constrained budget environment require a prioritization scheme. For instance, the recent development of renewable energy has seen the rise of effective asset managers involved in the management of solar systems (solar parks, rooftops, and windmills). These teams often collaborate with financial asset managers in order to offer turnkey solutions to investors. Infrastructure asset management became very important in most of the developed countries in the 21st century, since their infrastructure network was almost completed in the 20th century and they have to operate and maintain them cost-effectively. Physical, or Infrastructure, Asset Management is a growing specialist engineering discipline, with many technical societies now established to advance knowledge in this area, including the Engineers Australia technical society of the Asset Management Council (AMC), the World Partners in Asset Management (WPiAM), Society for Maintenance and Reliability Professionals (SMRP), the Institute of Asset Management (IAM), the International Society of Engineering Asset Management (ISEAM), and the Global Forum on Maintenance and Asset Management (GFMAM).
=== Engineering asset management === Engineering asset management is a more recent term that describes the management of complex physical assets, a specific engineering practice that is concerned with optimizing assets, in the context of the organization's goals and objectives, using multidiscipline engineering methodologies, and Terotechnology (which includes management, engineering, and financial expertise), to balance cost, risk, and performance. Engineering asset management includes multiple engineering disciplines, including but not limited to maintenance engineering, systems engineering, reliability engineering, process safety management, industrial engineering, and risk analysis. Engineering asset management is a term synonymous with physical and infrastructure asset management, it describes management of more complex physical assets which require the application of specialist asset management engineering methods over their life-cycles in order to maximize value for their owners, whilst keeping risk to an acceptable level.
=== Natural asset management ===