What Does Managing Sundry Assets Involve?

Related Information Sundry Asset Management Services What Does Managing Sundry Assets Involve? Oil, Gas, & Mineral Interests Timberland Farm and Ranch Commercial and Residential Real Estate Closely-Held Businesses Trust-Owned Life Insurance

Sundry Assets are an asset class just as stocks, bonds and cash are asset classes; and should be viewed as such. The main difference is that Sundry Assets are not exchange-traded and so are harder to value; but it is wrong to exclude them from the overall analysis of the account. Financial institutions should view Sundry Asset managers as a specialized portfolio manager for non-financial assets. An essential feature is establishing a committee or review structure to handle issues or exceptions the managers wish to escalate.

Sundry Asset reviews should be similar to reviews of the customer’s traded assets. The annual review should consider:

• whether to sell or continue holding the Sundry Asset, and why;
• if there are concentration issues;
• if the position is increasing, decreasing or going sideways value-wise;
• whether the Sundry Asset represents the highest and best use for the customer in light of the overall portfolio; and
• in cases where a sale is warranted, the marketability and timing of the sale.

In the context of the customer’s overall portfolio, Sundry Assets provide diversification, income and capital appreciation. They pose several challenges including liquidity, valuation, management expertise, ownership risks and liability exposure – in some cases beyond just the amount invested.

Sundry Asset management involves both controlling risk and managing risk. At the start of the relationship the institution controls risk by deciding whether or not to accept the asset. This process includes evaluating the risks, inspecting the asset and assessing the expertise available to manage it should it be accepted. The institution manages risk through well-defined policies and procedures specifically designed to address the unique risks associated with Sundry Assets; and insure regular reporting processes around the key risk items of those assets.

“Best of Breed” Service Providers. So who are the best vendors providing outsourced Sundry Asset management services to financial institutions? Oftentimes SPARDATA’s valuation service clients ask us to recommend “best of breed” service providers for specific types of Sundry Assets, so we continually evaluate the players and endorse those we believe do the best job – AND who are willing to make their expertise available to other financial institutions on a contract basis. (Full disclosure: these firms may pay SPARDATA a referral fee.) If you seek oil, gas and mineral asset Sundry Asset management expertise, call us at 800-895-4100 x107. Tell us what you are looking for, and we would be happy to put you in touch with companies that may be able to help you.

	1. How many sundry assets does your institution hold (approximately)? 10-99 100-999 1,000+ 2. What types of accounts are they held in? ERISA IRA Trust Other (Specify) 3. How are they being valued now (e.g cost, $1, book value)? 4. How did you hear about SPARDATA?  Contact Information First Name: Last Name: Company: Address: City: State: Zip: Company Website : Phone: Email: I have read, understand and agree to SPARDATA's privacy policy.