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What are the Different Areas of Asset Management?

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  • Written By: Jessica Ellis
  • Edited By: Bronwyn Harris
  • Last Modified Date: 20 July 2018
  • Copyright Protected:
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    Conjecture Corporation
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Asset management is an area of finance that involves the analysis, investment, and maintenance of funds and property. Many people prefer to handle their own assets, but using professional asset management companies may be useful for those who have large portfolios, complex investments, or simply not enough time to efficiently manage finances. There are several different areas in which asset management can be helpful; the goal of most management strategies is to protect current holdings and increase wealth through smart investments.

Portfolio analysis is one important area of asset management. This process allows a financial professional, such as an investment manager, to sit down with a client to examine his or her assets and investments. A good investment manager will listen carefully to the client's needs, hopes, and financial goals. Portfolio analysis can determine how assets may be better invested to meet financial goals, such as through diversifying investments or concentrating funds in higher yield accounts.

Private banking is an area of asset management that is sometimes available to clients with high value accounts. This type of banking typically involves much more personalized service than ordinary banks provide, and may include exclusive opportunities for investing that are not available to the general public. Each account holder may have a dedicated financial advisor through a private bank, who is able to provide regular updates on fund performance, as well as a wide variety of additional services.

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Much of asset management revolves around creating efficient investing strategies based on the client's portfolio and his or her goals. A financial advisor, or asset manager, is often responsible for using his or her expert knowledge of investing to ensure that a client's account grows over time. This task involves keeping up with a wide variety of factors, including market shifts, new investment opportunities, macroeconomic concerns, and the client's personal finance situation. The bulk of an asset manager's time may be taken up by continuously crafting strategies, overseeing implementation, and managing a client's assets to meet pre-set goals.

Asset management companies are invested with an enormous amount of trust, which means that scrupulous policies are needed to protect client security. Internal auditing is a regular part of most asset management firms, in order to reduce the opportunities for fraud, theft, or embezzlement. Some of the facets involved in internal auditing may include independent inspections of all investment records by an outside firm, analysis of computer security programs to ensure that no breach of network security has occurred, and individual auditing of each department to highlight potential security threats and improve efficiency.

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