Asset Management Business Financial Projection 3-Statement Model (Excel XLSX)

BENEFITS OF DOCUMENT

1. Preparation of a 5 year 3 statement (Income Statement, Balance Sheet, Cash Flow Statement) Financial Projection Model for a new or existing asset management business managing customer investments and generating management fee revenue and other com

DESCRIPTION

This product (Asset Management Business Financial Projection 3-Statement Model) is an Excel template (XLSX) with a supplemental Excel document, which you can download immediately upon purchase.

A Financial Projection 3 Statement Model is essential for Asset Management businesses. It projects income, expenses, and cash flows, facilitating strategic planning and resource allocation. This tool supports goal-setting, funding acquisition, and financial sustainability. It assists with portfolio management, fee structure analysis, and cost control. Accurate projections empower asset managers to make informed decisions, enhance operational efficiency, and adapt to market dynamics. It bolsters financial stability, attracts investors, and drives growth by aligning financial strategies with business objectives, making it indispensable for both established asset management firms and startups.

PURPOSE OF MODEL
Highly versatile and user-friendly Excel model for the preparation a of 5-year rolling 3 statement (Income Statement, Balance Sheet and Cash flow Statement) financial projection with a monthly timeline for a startup or existing asset management business managing customer investments and generating management fee revenue and other commissions/fees including brokerage commissions, custodian fees, entry and exit fees.

The model allows the user to model up to 10 customer group each with their own investment balances, portfolio compositions, and addition/redemption rates. The model also allows the user to model 10 different asset classes each with their own return and fee assumptions.

The model follows good practice financial modelling principles and includes instructions, line-item explanations, checks and input validations.

KEY OUTPUTS
The key outputs include:
•  Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) presented on a monthly basis across 5 years and summarised on an annual basis.
•  Dashboard with:
Summarised projected Income Statement and Balance Sheet;
Compounded Annual Growth rate (CAGR) for each summarised income statement and Balance Sheet line item;
List of key ratios including average margins, return on assets and equity and average debt to equity ratio
Bar charts summarising income statement and Balance Sheet projections;
Chart/tables presenting customer volumes, revenue breakdowns and portfolio compositions

KEY INPUTS
Inputs are split into Income Statement and Balance Sheet Inputs. Most inputs include user-friendly line item explanations and input validations to help users understand what the input is for and populate correctly.

Setup Inputs:
•  Name of business;
•  Currency;
•  First projection year and month;
•  Naming for customer categories, asset classes, staff cost categories, marketing cost categories, admin expense categories, fixed asset categories and borrowings;

Actuals Inputs:
•  Opening balance sheet (for existing businesses);
•  Income Statement actuals (for trend analysis);
•  Opening customer numbers and financial asset balances (for existing businesses)

Projection Inputs:
•  Fee and Commission revenue inputs including:
Customer additions/reductions
Average investment additions/redemptions per customer per month
Average investment allocations per customer group
Average number of trades per month
Average return by asset class
Annual management fee percentages
Entry/exit fee percentages
Custodian fee per annum per customer
Brokerage commission per trade
•  Direct cost inputs including:
Direct costs per trade
Direct costs per active customer
Direct costs per financial asset balances
•  Staff Costs including:
Staff numbers;
Average Annual cost per staff member;
Average employer's payroll taxes as % of salary;
Average annual bonus;
Average healthcare benefits per staff member;
•  Other cost inputs including
Marketing costs;
Staff costs;
Admin expenses.
•  Sales tax and corporate tax inputs including rate and payment periods;
•  Dividend inputs including amount or percentage of retained earnings and frequency;
•  Fixed Assets including addition amounts and useful life;
•  Borrowings including addition/redemption amounts and interest rate;
•  Share Capital additions.

MODEL STRUCTURE
The model comprises of 9 tabs split into input ('i_'), calculation ('c_'), output ('o_') and system tabs. The tabs to be populated by the user are the input tabs ('i_Setup', ‘i_Actuals' and 'i_Assumptions'). The calculation tab uses the user-defined inputs to calculate and produce the projection outputs which are presented in 'o_Fin Stats', ‘o_Dashboard' and ‘o_DCF'.

System tabs include:
•  A 'Front Sheet' containing a disclaimer, instructions and contents;
•  A Checks dashboard containing a summary of checks by tab.

KEY FEATURES
Other key features of this model include the following:
•  The model follows best practice financial modelling guidelines and includes instructions, line-item explanations, checks and input validations;
•  The model is not password protected and can be modified as required following download;
•  The model contains a dynamic timeline that allows for a mix of actual and forecast period across a 5-year period allowing projections to be rolled forward from month to month;
•  Timeline is split on a monthly basis and summarised on an annual basis;
•  Costs are split into: direct and non-direct for better driver-based forecasting;
•  The model allows for the following number of underlying categories for each line item (these can be easily expanded if required):
Customer categories – 10 categories;
Asset Classes – 10 categories;
Staff costs – 8 categories;
Marketing costs – 5 categories;
Admin expenses – 15 categories;
Fixed Assets – 5 categories;
Borrowings – 3 facilities;
•  Apart from projecting revenue and costs the model includes the possibility model fixed assets, borrowings, dividends, corporate tax and sales tax;
•  The model included an integrated discounted cash flow valuation using the projected cash flow outputs;
•  Business name, currency, starting projection period are fully customisable;
•  Revenue, cost, fixed asset and borrowing category descriptions are fully customisable;
•  The model includes instructions, checks and input validations to help ensure input fields are populated accurately;
•  The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.

Source: Best Practices in Integrated Financial Model Excel: Asset Management Business Financial Projection 3-Statement Model Excel (XLSX) Spreadsheet, Projectify