To Establish An Asset Management Company That Focus On Multiple Asset Allocation

This paper mainly studies the feasibility to establish an asset management company focusing on pluralities of asset allocation, and how to design this company.The establishment of such a company needs a lot of work: we need to survey and analysis the current situation and the demand of the market first; then position the company with the concept of modern portfolio theory, design product and operation arrangement of the company; according the division of the group, this paper mainly studies the necessity and the feasibility to add derivatives on the asset allocation.Supply requires a demand first, so in the first place we must undertake to the market research: with the rapid development of the domestic economy, domestic amount of the high-net-worth individuals is huge or not and whether they mainly distribute in the highly developed regions. The company was initially based in Wenzhou, which is a rich city, its amount of high-net-worth individuals is large or not? If the number of domestic and Wenzhou’s high-net-worth individuals is huge, there is a large demand of asset allocation. We believe that the existing financial market can’t satisfy the demand of the crow of this kind.In view of the present situation, we believe that the establishment of a diversified asset allocation company which can better meet the needs of asset allocation of high-net-worth individuals ether at present or in the future has great market space. Then we must consider how to do a good job of asset allocation, which is the key link, company’s investment philosophy, product design and the operation of the company is obviously very important. Derived category of asset allocation is a key focus; we think that the derivatives in the asset allocation can play a role of risk diversification, so adding commodity index into the asset allocation is necessary. Because derivatives have short mechanism, so the correlation between each strategy is relatively low, so in the asset allocation process the selection of a team is more important than the selection of a strategy.