Asset management firms are usually involved in the professional handling of different types of securities (for example, bonds and stocks) and assets like real estate for accomplishing particular investment objectives for the well-being of the investor.
The investors in asset management firms may range from private or individual investors to institutional investors. Examples of institutional investors are pension funds, hedge funds, insurance companies, corporations, and many others. The individual investors invest in asset management firms through investment agreements or contracts or with the help of collective investment schemes like mutual funds and this is becoming more and more popular day by day.
The term asset management is frequently applied for denoting the investment administration process for collective investments.
On the other hand, fund management is a more common term, which refers to every type of private investment management, as well as institutional investment management.
Asset management professionals who offer specialized advisory or consultancy services and manage the funds on behalf of the individual and institutional investors are known as portfolio managers or wealth management professionals. Private banking is often associated with asset management, as well.
Asset management firms provide their services on the basis of a number of factors, which include the following:
Selection of asset
Selection of stock
Implementation of strategies
Continuous tracking of investments
Asset management firms form a significant portion of the worldwide financial markets. They are involved in transactions amounting to trillions of Euro, US Dollar ($), Yen (¥), and British Pound (£).
Asset management is a functional constituent of financial services and there are numerous asset management firms all over the world who recruit millions of asset management professionals who produce revenue in billions.
In the United States, asset management professionals are termed as investment advisors. They can function individually or by forming a firm.
The leading asset management firms of the world include the following:
Barclays Global Investors UK
UBS AG Switzerland
AXA Group France
State Street Global Advisors US
Fidelity Investments US
Allianz Group Germany
Deutsche Bank Germany
Capital Group US
Vanguard Group US
JPMorgan Chase US
Credit Suisse Switzerland
Legg Mason US
Mellon Financial US
The asset management firms always focus on the following tasks:
Diversification of assets
The performance of the assets is measured by the asset management firms through the two following methods:
Risk-adjusted performance measurement
Absolute versus relative performance measurement
Last Updated on : 27th June 2013