What is an Asset Manager?

What is an Asset Manager?

The goal of asset management is to increase wealth over time by buying, selling and managing investments effectively, whilst minimising risk. An asset manager’s role is to provide this service to individuals or organisations. They use their understanding and expertise in the field to make investment decisions on behalf of their clients. Asset managers can work in a number of financial institutions such as investment banks or hedge funds.

The main roles of an asset manager include:

·      Investment planning: An asset manager must assess the aims and risk associate with the specific client and create investment plans that best suit that given client, with the goal to maximise wealth, whilst mitigating risk.

·      Portfolio management: An asset manager must analyse the best possible asset strategy, by managing the distribution of different assets. This could include real estate, stocks, bonds, etc. To minimise risk an asset manager will likely diversify the client's portfolio, investing in different forms of assets.

·      Market research: It is important for an asset manager to stay up-to-date with current and new market trends, in order to confidently make the best investment decisions. 

·      Performance tracking: Regular monitoring of the investment’s performance is vital to ensure the client’s goals are on track to be met. Reporting this information to clients is crucial to build trust and confidence in the investment strategies of their assets. Necessary changes in investment strategies may be made by an asset manager and it is important to relay this information too.

·      Risk management: It is vital to identify potential risks and implement ways to minimise these, such as hedging and diversification.

To become an asset manager a degree in finance (or similar) is important. After obtaining a degree there are various routes one can take to become an asset manager. This could be through an apprenticeship, internship, entry-level roles and more. Gaining experience and building key skills is crucial to working your way up in asset management. Key skills an asset manager possesses are analytical and financial skills, interpersonal and communication skills, organisational skills, negotiation skills, business skills and more.

We hope you found this useful and if you are considering a job in asset management or the financial services check out our jobs page or contact us for more information.