AM Framework: Investment Decision Making

AM Framework Miniseries - Reloaded

This article highlights two complementary investment decision making concepts related to the Asset Management (AM) Framework.  The first concept focuses on the generation of value.  The second concept focuses on investment decisions.

The decision-making context for this is the AM Framework introduced in this miniseries.  The AM Framework defines decision making logic.  It provides infrastructure for decision making that supports coordination of management activities.  As with other types of infrastructure, its purpose is to generate value.

Generation of Value:

Value is a complex concept when it comes to disciplined asset management.  This complexity begins with the two common definitions for the word value.  They are:

• …the importance, worth, or usefulness of something.

• …a person’s principles or standards of behavior.

From an individual's perspective, the first viewpoint is outwardly focused, and the second is inwardly focused.  We also know that things work better when there is harmony betw…