What is asset management? | Lloyds Bank (2024)

What do asset management companies do?

Asset management firms managefunds for individuals andcompanies. Theymakewell-timed investment decisions on behalf of their clients to grow their finances and portfolio. Working with a group of several investors,asset management firmsare able to diversify their clients' portfolios.

An asset manager’s main role is investing wealth. To maximise your potential returns, they monitor and assess the market to look for threats and opportunities and adjust your portfolio accordingly.

Utilising these areas of expertise, an asset management company will manage your portfolio daily to minimise your risks and seize new opportunities.

Advantages of asset management

  • An asset management company will have a great deal of resources and services at their fingertips. This means you’ll have more investment options than trying to do this for yourself.
  • Your asset manager will aim to ensure your investments meet your financial objectives with the level of risk you have allowed them to take.Annual reviews are there to assess whether the strategy still meets your needs. If your needs have changed, you will be switched you to a new strategy.

Disadvantages of asset management

  • You may be able to reach your investment or savings goals without any outside help, using traditional savings products, like ISAs.
  • Many asset managers require a minimum level of investment, which could be more than you’re looking to invest.
What is asset management? | Lloyds Bank (2024)


What is asset management? | Lloyds Bank? ›

Asset management is the day-to-day running of a wealth portfolio. It is usually headed by an investment manager. The management of assets involves building a portfolio of investments. This includes assessing risks, finding opportunities, and developing an overarching strategy for reaching a set of financial objectives.

What does asset management company do? ›

An Asset Management Company (AMC) is a financial institution that manages and oversees the operations of mutual funds and other investment vehicles. These companies play a pivotal role in the investment industry by creating and administering various fund products to meet the diverse financial goals of investors.

What does asset management job do? ›

Asset managers manage and monitor a company's assets. This could include property, money, stocks, shares and bonds, commodities, equities and other financial products. As an asset manager, you'd aim to maximise your employer's return on investment.

What is an example of asset management? ›

Managing the estate of someone with wealth is an example of asset management. Having a certain number of investments and property is a full-time job to oversee, so an asset manager is hired to do so.

Is JP Morgan an asset management? ›

Company information. J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. JPMorgan Asset Management (UK) Limited, which is authorised and regulated by the Financial Conduct Authority.

What does asset management do in a bank? ›

Asset management is the day-to-day running of a wealth portfolio. It is usually headed by an investment manager. The management of assets involves building a portfolio of investments. This includes assessing risks, finding opportunities, and developing an overarching strategy for reaching a set of financial objectives.

Do asset managers make money? ›

Many asset managers are fee-based, which means the bonuses they earn on top of their base salaries represent a flat percentage of the money they manage and do not vary based on the performance of that money.

Who uses asset management? ›

Asset management as a service is generally provided by specialized firms to individuals, government entities, corporations, and institutional investors. Asset managers have a fiduciary responsibility to their clients to act in their best interests.

What is asset management in layman terms? ›

Asset Management Definition Asset management is the service of managing a client's money. At its core, that means identifying a client's financial goals and then working to accomplish those goals via portfolio management--buying and managing stocks, bonds and funds.

What are the three main asset management types? ›

Historically, the three main asset classes have been equities (stocks), fixed income (bonds), and cash equivalent or money market instruments. Currently, most investment professionals include real estate, commodities, futures, other financial derivatives, and even cryptocurrencies in the asset class mix.

Is Bank of America an asset manager? ›

Regarded as one of the world's leading financial institutions, Bank of America serves individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk management products and services.

Is Goldman Sachs an asset management company? ›

We provide investment management solutions across all major asset classes to a diverse set of institutional and individual clients. Bringing together traditional and alternative investments, we provide clients around the world with a dedicated partnership and focus on long-term performance.

Who owns Chase bank? ›

Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with $2.6 trillion in assets and operations worldwide.

How does asset management company make a profit? ›

To generate returns, an AMC pools money from its clients and invests it in various asset classes such as stocks, bonds, and real estate. The fee for the company's services is typically a percentage of the assets under management.

What skills do you need for asset management? ›

Must-have skills for an asset manager
  • An asset manager must master some critical skills. ...
  • Strong analytical skills. ...
  • Knowledge management. ...
  • Strong communication skills. ...
  • Information segmentation. ...
  • Innovative thinking.

Is asset management a good job? ›

For those who value stability and a good work/life balance but still want substantial compensation, asset management could be the perfect fit. However, the field is still quite competitive and intellectually demanding, so a degree and additional professional qualifications are a must.

What do asset companies do? ›

An asset management company (AMC) is a firm that invests pooled funds from clients, putting the capital to work through different investments including stocks, bonds, real estate, master limited partnerships, and more.

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