Week 2

The management of assets is by far the most important ingredient of financial success in the modern world. Indeed, according to Chandra, (2017), the importance of the asset management industry to the financial wellbeing of all other industries in the world cannot be ignored. This is because it is through proper financial management that the link between providers and seekers of investment capital around the world (Campbell, Jardine & McGlynn, 2016). Asset managers are responsible for a number of investment decisions that their clients make based on their own analysis of the market. Jordan, Miller and Dolvin, (2015) asserted that the practice, which is largely played by financial intermediaries, has grown into a booming industry involved in various sub-sectors including finance, physical and infrastructure, enterprise as well as public asset management. This study intends to find out the role played by financial intermediaries in asset portfolio management among financial institutions listed at the New York Stock Exchange.

Financial intermediaries dealing in asset management help their clients to manage assets by making well timed investment decisions for them thus ensuring that their asset portfolio grows bigger. As stated by He & Krishnamurthy, (2018), asset management is important because it helps investors to identify the best investment opportunities and seize the moment for maximum profits. Comment by musgravj@gmail.com: Comment by musgravj@gmail.com: Paragraphs should be three to five sentences in length Comment by musgravj@gmail.com: -

According to Giglio, Friar & Crittenden, (2018), asset managers need to look for a systematic approach to governance that leads to improvement in the return on assets/investment. This paper seeks to investigate how the use of financial intermediaries to manage assets brings about a positive effect on the nature of investment decisions made. The researcher aims to use a qualitative research methodology to gather proof that customers are better off employing a financial intermediary institution than managing the assets on their own. A statement of the problem will be provided to help identify the research problem and the methodology that will be used to find proof for the claim. A justification for the choice of research methodology will also be provided in this paper.

Statement of the problem Comment by musgravj@gmail.com: Center heading. See APA 6th

The purpose of this qualitative study is to find out the advantages of using financial intermediaries in asset portfolio management and assess whether these organizations offer an added advantage to an investor who chooses to use them as opposed to doing it on their own. A qualitative study design will be used in which narrative data will be collected and analyzed to help find answers to the research questions that will be sought by the study. These data will represent the information obtained from the respondents who will have provided information on how modern trends in asset portfolio management can help improve the financial position of a company through increased returns on investment/assets. Qualitative data will be gathered exploring the advantages of asset portfolio management and the role played by financial intermediaries from investors and financial institutions listed on New York Stock Exchange. The reasons for using this form of data to come up with scientific evidence is to develop an in-depth understanding of the topic and therefore be able to provide a better understanding of the problem which will, in the long run, help individuals to make better financial investments/ manage their assets better. Comment by musgravj@gmail.com: Comment by musgravj@gmail.com: How? Comment by musgravj@gmail.com: Citation needed

Research Questions Comment by musgravj@gmail.com: Center

In order to find answers to the research problem stated above, the following research questions will guide the researcher.

i. Are investors better off employing financial intermediaries to manage their asset portfolios or should they do it themselves? Comment by musgravj@gmail.com: RQ 1

ii. What are the advantages of using financial intermediaries to manage personal/ corporate asset portfolios? Comment by musgravj@gmail.com: RQ 2

Justification of using Qualitative Research Methodology

A research methodology is the branch of philosophy that analyzes the principles and procedures of inquiry in a particular discipline. While there are several types of research methodologies, the researcher chose to take the qualitative method. This method is best preferred because it provides an in-depth and detailed analysis of the phenomenon at hand by providing allowing the researcher to seek a deeper description of the attitudes, feelings and behaviors. It also brings about a sense of openness because it encourages people to be involved and expand their understanding of the phenomenon. In his study on the advantages and disadvantages of using qualitative and quantitative approaches in research, Rahman, (2017), pointed out that using qualitative methodology also allows the participants to expand on their responses which can also lead to them opening up new topic areas that were not considered initially. Comment by musgravj@gmail.com: Citation needed Comment by musgravj@gmail.com: Citation needed

In general, the qualitative approach is largely based on observation and description of the state of the problem. In this case, the main problem is that investors are torn between managing their own asset management portfolios and outsourcing these services from third party financial intermediaries. This problem can be solved by investigating the latest asset portfolio management approaches and how they can be used to improve the current state of personal and corporate investment opportunities at the New York Stock Exchange. Comment by musgravj@gmail.com: Citation needed Comment by musgravj@gmail.com: - Comment by musgravj@gmail.com: Is this the answer to your study?

Conclusion Comment by musgravj@gmail.com: Center

This paper outlined a justification for the use of qualitative methodology to find out the advantages associated with using financial intermediaries for investors at the New York Stock Exchange. It was established that the method will be used to gather information regarding asset portfolio management from investors and owner/asset managers of various financial intermediaries that help investors make manage their investments at the New York Stock Exchange. This is because this methodology makes it possible for the researcher to gather detailed and in-depth information from participants who are more willing to participate due to the openness it creates. For instance, gathering information using interviews or questionnaires is more effective than gathering secondary data from secondary sources. Comment by musgravj@gmail.com: the Comment by musgravj@gmail.com: the Comment by musgravj@gmail.com: ??? Comment by musgravj@gmail.com: Citation needed

References

Campbell, J. D., Jardine, A. K., & McGlynn, J. (Eds.). (2016). Asset management excellence: optimizing equipment life-cycle decisions. CRC Press.

Chandra, P. (2017). Investment analysis and portfolio management. McGraw-Hill Education.

Giglio, J. M., Friar, J. H., & Crittenden, W. F. (2018). Integrating lifecycle asset management in the public sector. Business Horizons, 61(4), 511-519.

He, Z., & Krishnamurthy, A. (2018). Intermediary asset pricing and the financial crisis. Annual Review of Financial Economics, 10, 173-197.

Jordan, B. D., Miller, T. W., & Dolvin, S. D. (2015). Fundamentals of investments: valuation and management. McGraw-Hill Education.

Rahman, M. S. (2017). The Advantages and Disadvantages of Using Qualitative and Quantitative Approaches and Methods in Language" Testing and Assessment" Research: A Literature Review. Journal of Education and Learning, 6(1), 102-112.

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