There may be occasions in life when you wish to enlist the support of asset management services.
In this guide to the benefits of asset management, we offer a few pointers to maximising the value of your investment portfolio, and increasing wealth over time at an acceptable level of risk.
Asset management professionals, sometimes known as financial advisers or portfolio managers, work with clients to advance their financial interests. Their services are usually provided by firms that are registered and officially listed as broker-dealers.
Some work independently, while others work for an asset management company or investment bank. The service is usually provided by specialised firms who count individuals, government agencies, corporations and institutional investors as clients.
An asset manager takes responsibility for developing a client’s portfolio, overseeing it on a daily basis, making changes as and when required, and interacting regularly with their client. They communicate why changes are implemented, and how their investment objectives are being realised.
Effective asset management increases value while mitigating risk. People’s willingness to take risky financial decisions will depend on their unique circumstances, and a retiree living off a portfolio income may have a more conservative outlook than a more aggressive younger investor. Most people are somewhere in the middle, and the task of an asset manager is to identify a client’s risk threshold and how to meet their financial objectives within this range.
Investments might include property, commodities, bonds, mutual bonds, stocks and shares, and the alternative investment market. To secure the best return, asset management may necessitate extensive research, the use of analytical statistical tools to monitor market patterns, reviews of corporate finances and any other intelligence that will aid the client’s understanding.
There are different types of asset managers who specialise in different areas. These include registered investment advisers, brokers, financial advisers and algorithm driven robo-advisers. Each has a unique level of responsibility to their client, and it is crucial to familiarise yourself with the level of service offered before investing.
Irrespective of the type of asset management company, all are essentially competing to serve the specific investment needs of individuals and larger institutions. Every time an individual deposits money into an account, it enters a money market fund that promises a more lucrative return than a normal savings account. As specialists in their area, asset managers tend to offer in-house products, and mostly use a stricter, more focused approach in their capacity as investment experts operating closer to the current market.
Ultimately, the primary aim of asset management is to formulate the smartest investment strategy investors who need help managing their assets, offering analysis and weighing up risk versus return. With this emphasis on investment methodology, using analysis of past and present trends, it leaves clients to work out other financial decisions, relating to tax, cashflow, estate planning and retirement decision making for themselves.
If you are currently looking for asset management services in Cheshire, contact our dedicated team at Hartey Wealth Management today to set up a consultation.
