Top 3 Tips to Assess your Assets

As we approach the end of H1, this is a perfect time to assess the performance of a portfolio, and adjust the mix as necessary. If successful fund management is about maximising the returns available on capital, then constant assessment – and identifying appropriate strategies as a result – is a vital part of the job.

Successful investors don’t simply invest once and expect to reap the rewards forever. Investors need to be managing the performance of each and every asset, and looking out for opportunities which might serve them better.

What are assets?

The main assets we usually deal with at Gerald Eve are property related. This could be a personal or business portfolio of properties, a national investment portfolio or a specialist BTL management company. However when assessing your assets you should look at all of your assets a whole, which could also include:

  • Shares
  • Pensions
  • Endowment funds

There is no one-size-fits-all solution when it comes to asset management. The process will be tailored to you and your personal situation to help you get the best out of your investments. Here are our three tips for reducing risk, protecting value and assessing your current assets:

  1. Compare against benchmarks

Hopefully you will already be calculating your return on each individual asset to work out total income (including dividends, rent and interest). Keeping a record of the return, and comparing it to inflation, helps you understand which parts of your portfolio are performing well and which are low performers. You should then compare the figures to key benchmarks, including the risk-free benchmark, to check whether each asset is worth the risk in the short and long term.

  1. Be sale-ready

When assessing property assets, it’s important to have a sale-ready approach in case any snap decisions need to be made. Property should be as liquid as possible, and therefore every time a new investment is made you should ensure a clean title and all legal matters taken care of, so you have a collection of sale-ready investments which are easily managed. During an assessment, consider how easy the asset would be to sell on the current market.

  1. Get professional advice

Managing funds and assets is a time consuming job and most investors need expert advice to make a good profit. It’s important to find a company which offers strategic investment advice, personalised towards your assets, which will make your investments work harder.

If you’re ready to assess your assets, get in touch with our asset management team.