To manage the assets they own, companies need an asset management system. This asset management system must be able to manage all assets owned by a company, both tangible ones, such as land, buildings, machines, equipment, and others, or intangible ones, for example stocks, copyrights, trademarks, and so on.
In the world of investment, we know the term asset management or asset management. Asset management is one of the management and cycles that occur in every company. In carrying out asset management, you can be assisted by an asset manager or also known as an investment manager.
In this article, we will discuss the duties of an asset manager and the types of asset managers that exist. Read this article to find out more!
Key Takeaways:- Asset management refers to the practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value.
- Asset management aims to optimize asset value, manage risk, and achieve long-term financial goals.
- Asset managers play a role in determining investments that will be made or avoided, and achieving clients' financial goals within the clients' risk tolerance limits.
Definition of Asset Management
Asset management is the process of managing assets, both financial and physical. Asset management refers to the practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value.
Asset management has dual objectives, namely increasing value while reducing risk. Asset management aims to optimize asset value, manage risk, and achieve long-term financial goals. Through asset management, companies can make decisions and take actions to maximize asset value while considering the associated risks.
What is an Asset Manager?
An asset manager or asset manager refers to an investment fund, insurance company, or wealth management company, which is responsible for making investment decisions based on investor objectives and market conditions.
They play a role in determining investments that will be undertaken or avoided, and achieving clients' financial goals within the clients' risk tolerance limits. Asset managers are also responsible for creating clients' portfolios, monitoring them daily, making changes if necessary, and communicating regularly with clients regarding those changes.
Various types of financial assets managed by asset managers include:
- Stocks
- Bonds
- Commodities
- Mutual Funds
- Index Funds
- Private Equity
- Hedge Funds
- Managed Futures
- Real Estate Property
Asset managers usually offer their services to certain groups of clients. Some asset managers work independently, but there are also those who work for financial institutions, such as banks or asset management companies.
5 Types of Asset Managers
There are several types of asset managers that are important for you to understand, namely:
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Registered Investment Advisor (RIA)
A Registered Investment Advisor (RIA) is required to register with the SEC or state authorities if they manage more than $100 million in assets. RIA fees are typically charged as a percentage of assets under management.
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Investment Brokers
Investment brokers act as intermediaries in investment transactions. Their commissions may come from trading fees, maintenance fees, or by selling proprietary products. They do not have a fiduciary obligation.
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Financial Advisors
Financial advisors can buy and sell securities on behalf of their clients and provide recommendations on matters such as insurance and taxes. They may have a fiduciary duty.
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Financial Planners
Financial planners provide a holistic view of a client’s finances, including savings, money management, and investing. Fees may be hourly, flat, or based on a percentage of assets.
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Robo-advisors
Robo-advisors offer lower-cost investment management using algorithms, with little to no human involvement.
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Asset Management Company (AMC)
Asset management companies create and manage investment products such as mutual funds and ETFs for both individual and institutional investors.
Asset Security Guaranteed with BTN Prioritas
As an asset owner, you certainly do not want bad things to happen to your assets. For that, you need to have a solid plan to manage all your assets, so that the assets are protected from various risks that may occur. You don't need to worry, because your assets will be safe with BTN Prioritas.
As one of the banking services offered by Bank Tabungan Negara (BTN), BTN Prioritas has various fund and protection programs to help customers protect and manage their assets or finances.
Bancassurance is one of the services provided by BTN Prioritas. This service is a protection service that provides security guarantees for your assets. With Bancassurance, you can manage your assets effectively so that you avoid financial losses and can maintain the health and sustainability of your business.
In addition, BTN Prioritas also provides investment product services including Mutual Funds, Bonds, and Deposits. With these investment products, you can add value to your capital assets so that capital assets can provide maximum contribution to your business goals.
So, what are you waiting for? Immediately manage and protect your assets with BTN Prioritas.
