Asset Management Explained

Asset management refers to the directing of the cash and securities of a client by a financial services company. Asset management services typically have an investment minimum that makes them unsuitable for many investors, dealing with investors such as high net worth individuals, corporations, government entities and financial intermediaries. Rubrics Asset Management, which is owned by Shard Capital, works with both institutional and private clients including high net worth individuals, charities, fund-of-funds and endowments.

How Asset Management Works

While asset management has many different aspects, they are all united under the single goal of growing the value of the client’s portfolio. Asset managers spend a lot of time in market research and statistical analysis, looking at the trends, markets and individual companies on behalf of their clients. The asset manager then uses the results of this research, along with the client’s investor profile, to make decisions as to what investments to make. Typically, an asset management firm will charge the client a fixed percentage fee of the total funds under management, called a management fee. One of the benefits to investors of using an asset management service is that all their investments are managed under one roof, rather than having to deal with various banking options and a separate brokerage account.

Corporate Asset Management

The term ‘asset management’ is also used within corporate finance, referring to the process of ensuring that all the assets of the company are put to best use. This includes both tangible and intangible assets. Corporate asset management involves the weighing of risks costs and opportunities against desired asset performance.

Becoming an Asset Manager

Firms employing asset managers will typically be looking for a strong background in finance, statistics, maths and accounting. Those aiming to become asset managers would therefore do well to take as many accounting and statistics classes as possible, to demonstrate that they can handle the role. Many firms will not only look for a good degree, but also a Chartered Financial Analyst credential for asset manager candidates. An MBA will also be an advantage. Experience counts as well as qualifications, with many asset managers spending time working as investment bank analysts or researchers. Experience in sales, trading or marketing within an asset management firm could prove an advantage.