Asset Management Guide

What is Asset Management?

Asset management is a service that has become increasingly offered to a wider range of investors, but was once upon a time a service exclusively for high net worth investors. The term high net worth individual is used to refer to individuals who have significant financial holdings - but this only applies to financial assets, not property or real estate. Asset management is, as the name suggests, the management of money invested in assets and, once invested, the management of these assets themselves. The term management does not refer to management in the traditional sense but to the service that these firms offer which involves analysing the various assets or investments and knowing when the right time to buy and sell is. By doing this, these asset management companies are able to make potentially substantial profits on behalf of their clients. Each asset manager, depending on the size of their investors portfolios, will manage a combined fund with numerous client investments. Asset management is sometimes referred to as investment management or money management but regardless of the terminology, is essentially the looking after of investments on behalf of clients who may be private investors or multi-billion pound financial institutions. The types of investments are as wide-ranging as the types of risk that clients are willing to take on for a healthy return but may include the likes of stocks and shares, bonds, convertible securities, alternative assets (which as discussed in the "alternative assets" article can include the likes of real estate investment trusts and venture capital trusts), commodities, indexes as well as money market investments (funds that invest in debt securities). Each of these options has varying levels of volatility and risk and consequently, varying levels of potential profit. Asset management is a service that is more often offered by many investment companies and the services can often refer to the investment management that firms undertake on behalf of private investors of all shapes and sizes, but primarily focusing on high-net worth individuals. Large banks and large brokerage houses create segmentation marketing-strategies to sell both proprietary and non-proprietary products and services to investors designated as potential high net-worth clients. Independent wealth managers use their experience in estate planning, risk management,and their affiliations with tax and legal specialists, to manage the diverse holdings of high net worth clients with investments options spread across a wide range of commodities, equities, currencies and various other financial services. Making sure you use the right asset management company or individual is a huge part of ensuring that you save money, while also seeing your investments develop and grow with the lowest possible risk. The main companies offering these elite services incorporate a variety of services that are intended for investors with large amounts of assets, as well as family trusts and the smaller business accounts.There are a number of these firms and professionals who specialise in bringing together clients and needed money management services. This may even include tax advice and help with investment strategies to minimize financial obligations and outlays while maximising the returns and profits seen.