- Chartered Financial Planner
If you’re new to the idea of thinking about your financial future, then ‘asset management’ may be something you’ll hear a lot about. But what is it?
Two of the terms widely used in the financial services market when talking about asset management are financial planning and investment management.
What that means for you may not always be clear, and so here we’ll answer some of the common questions about asset management to help you assess if it’s something you should be exploring further.
Most simply put, asset management is a combination of independent financial advice and investment management services to help you reach your goals.
Typically, this service is provided by an independent financial planner who will structure your portfolio based around your circumstances and objectives. This is to help ensure that your money is being managed tax effectively and in line with the investment risk you are prepared to take with your money. An investment manager will then manage the underlying investments on a day to day basis ensuring they stay aligned to your risk profile while encouraging growth or preservation, depending on objectives and risk appetite. Our top tips for a brighter financial future also covers some of the key things to think about when financial planning.
Some people may approach an asset management firm with a set objective in mind, for instance, planning for retirement, whereas others may feel that their finances need a bit of a ‘spring clean’. Generally, asset management services can be used to:
For many of us, the idea of managing our own investments is a daunting task and few may feel confident enough to make decisions about where we should put our money and when. Investment managers are here to help! They can manage an array of investments for you and take the stress out of something you may have little knowledge or interest in.
Investment managers manage funds, equities, bonds and other investment vehicles on a client’s behalf to help them meet their goals. They offer specific recommendations to help investors make the most of their money based on their attitude to risk and overall objectives.
While investment management goals are always individual, common objectives include:
While these different goals may require different investment strategies, your financial advisor and investment manager can work with you to help you prioritise your different objectives and put something suitable in place.
An investment manager can created tailored portfolios based on clients’ requirements, attitude to risk and current market conditions to try and meet these goals. They use extensive research to identify buying opportunities and keep portfolios under constant review. You can expect to receive clear reports from your investment manager detailing how your investments have performed and any changes which have been made.
Working with a professional investment manager provides many benefits. Investment management services can help you:
It can feel a big step to get in touch with an asset management firm for the first time and you may not know what to expect. However, at Anderson Strathern Asset Management (ASAM) we genuinely pride ourselves on our financial and investment advice and enjoy working with first time investors just as much as those who are more experienced. We enjoy creating relationships with our clients centred around trust and taking them step by step through the financial advice and investment process.This information is obtained from sources considered reliable, but its accuracy and completeness is not guaranteed by Anderson Strathern Asset Management Limited. Neither the information nor any opinions expressed constitute financial advice. Investments can fluctuate in price, value and/or income and may return less than the original amount invested. Past performance is not necessarily a guide to future performance. Anderson Strathern Asset Management Limited is authorised and regulated by the Financial Conduct Authority.