Asset Management
What is Asset Management?
Asset management has two general definitions, one relating to advisory services and the other relating to corporate finance.
In the first instance, an advisor or financial services company provides asset management by coordinating and overseeing a client's financial portfolio -- e.g., investments, budgets, accounts, insurance and taxes.
In corporate finance, asset management is the process of ensuring that a company's tangible and intangible assets are maintained, accounted for, and put to their highest and best use.
How Does Asset Management Work?
An asset management company serving as an advisor to a client has one overriding goal -- to substantially grow its client's portfolio. Asset managers are often hired by institutional investors like pension funds, corporations, and financial intermediaries, as well as high net worth individuals.
Asset managers conduct research, interviews, and statistical analyses of companies, markets, and trends in order to determine what investments to make or avoid on behalf of their clients. Asset managers do not generally need "asset manager" licenses, though the firms that hire these managers often require registration with one or more exchanges and/or the National Association of Securities Dealers (NASD).
In corporate finance, asset management requires finding ways to maximize a company's value by managing fixed and intangible assets to be more reliable, efficient, or cheaper -- including evaluating asset financing options, asset accounting methods, productions operation management, and maintenance discipline.
Why Does Asset Management Matter?
Although most financial jobs don't carry an official "asset manager" title, the truth is that nearly everyone in the finance world is an asset manager.
As a result, most financial professionals are judged on their ability to successfully manage assets -- either directly or indirectly. Proficiency in asset management makes the difference between a mediocre and a stellar performance at both the individual and corporate levels.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
