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An asset manager or investment manager is someone who manages (usually larger) assets, that is to say: is responsible for investing the money in such a way that the highest possible return can be achieved. A company that specializes in asset management lexington ky is also referred to as an asset manager. The work of asset managers shows similarities and is sometimes comparable to the work of asset managers, although the latter function is generally somewhat broader. The Hamilton Chukyo Brokerage is the best option for such works.
What is asset management?
Asset management, investment management or asset management means that a specialized organization (or an individual) is given responsibility for someone’s assets, with a view to professional and successful investment. There is a distinction between individual asset management and collective asset management. In the first case, a party entrusts its assets to a manager, with whom it can make agreements about strategy and other matters. Collective asset management offers people the opportunity to participate in a particular form of collective investment, such as an investment fund. Participants can participate in this with a relatively small amount of capital and the investment opportunities can also be spread over different stocks and segments. Collective asset management also includes the pension fund, which can design the investment itself.
The Authority for the Financial Markets (AFM) supervise the financial market as a whole and asset management as a specific branch. In addition, asset managers are obliged to provide a financial information leaflet explaining the risks of the product. The Securities Institute maintains a register of qualified asset managers who can register if they work for an employer and adhere to the guidelines of the Participant Regulations.
What does an asset manager do?
Asset managers generally have the following duties:
- Acquiring customers and building a portfolio
- Analyzing the market and identifying opportunities
- Building a network of both private and business contacts
- Inventory of goals and wishes of the customer (for example expected returns and time schedule)
- Drawing up a risk profile
- Determining the investment strategy in consultation
- Advising on or executing buy and sell transactions of, for example, shares, bonds, options, hedge funds and real estate
- Advising on financial planning with a view to the future
- Regularly checking the topicality and relevance of investment goals and profiles
- Contributing to establishing and adhering to the company’s investment strategy and philosophy
- Keeping up with developments in legislation and regulations, especially with regard to the Wft (Financial Supervision Act).
Difference investment fund and asset management
The difference between investing in an investment fund yourself and online asset management is sometimes small.
When investing yourself, you must determine your risk profile yourself. If you then invest in a mix fund yourself with your chosen profile (for example, a defensive mix fund), the fund manager will already spread the investments over various investment categories, such as shares, bonds and savings. The fund manager also monitors whether the investments fit the profile of the fund (in this example: defensive).
With online asset management you fill in a questionnaire online with that provider to determine your investment profile. You will then receive a management agreement from that administrator. That manager invests your assets in funds with the matching profile. You will be informed of the results online or in writing.
When you invest yourself, you do not sign an agreement and you have to keep track of the result yourself. The costs of investing yourself are usually lower than those of online asset management.
