Let’s take a look at what asset management means. Our goal to help you understand how it works and what type of services we offer our clients.
Asset management is about managing clients investments and providing them with the strategies and expertise that would allow them to achieve their goals and secure their financial future. In other words, asset managers are in the business of using money to make more money.
Individuals or institutions are likely to approach an asset management firm when their investment income is substantial. In such cases, asset managers are able to offer expertise across a wide spectrum of asset classes. Such as stocks, bonds, commodities, real estate, private equity and digital currency. Large firms have branches all over the world and are therefore able to offer geographical expertise as well, given that asset managers closely follow all of these markets, they’re able to offer high-quality advice and superior risk-return investments.
Clients receive a comprehensive service. Asset managers study their needs, create an actionable investment strategy, implement the strategy in practice and oversee its development over time.
Let’s talk about the type of investments that are typically made on behalf of clients. Asset managers study the markets and their client’s needs and based on that, build investment portfolios across a broad range of asset classes.
- Stocks: Small caps, large caps, blue chip, dividend stocks, stocks from growth regions such as BRIC countries and others. There are many types of stocks that can be included in a client portfolio. It all depends on his or her risk profile.
- Bonds: Short maturity, long maturity, corporate, government. There are many types of bonds that can be included in a clients portfolio. In addition, asset managers may invest in commodities, real estate and some other alternative investments such as private equity or hedge funds.
- Digital Currency: Short maturity, long maturity, corporate, government. There are many types of bonds that can be included in a clients portfolio. In addition, asset managers may invest in commodities, real estate and some other alternative investments such as private equity or hedge funds.
Each of these asset classes is a part of the equation that determines how to allocate a clients money. The art of this profession is to maximize return without assuming excessive risk.
What roles are available in asset management? There’s a wide range of roles within an asset management organization. The sales force is responsible for establishing client relationships and understanding clients needs. Portfolio managers, on the other hand, are the ones ultimately responsible for making investments decisions.
In order to make informed decisions, portfolio managers use the input of the research department, where people with specific industry, product or geographical expertise can be found. Each of these positions requires a specific skill set, which means that you can choose a role the best describes your personality traits.