The term “asset management” refers to the financial service of managing assets by means of financial instruments with the aim of increasing the invested assets. Thus, an asset manager is a company whose business purpose is managing wealth. Asset managers bundle a person’s savings and invest them as profitably as possible in the world economy.
Investment opportunities include government financing through sovereign bonds, private sector financing through equity or bond purchases, and financing infrastructure needs, with the aim of generating a return that is shared between the asset manager as remuneration and the investor as their return.
ASSET MANAGEMENT—THE INDUSTRY OF MANAGING WEALTH
In Germany, the correct banking supervisory term for asset management services pursuant to Sec. 1, Para. 1a No. 3 KWG is ‘portfolio management’ In contrast to financial or investment advice, asset management not only provides investment suggestions in the form of an advisory service, but the asset manager makes and carries out investment decisions autonomously.
Owing to their business purpose, asset managers either operate as independent companies or as subsidiaries and divisions of banks and insurance companies. They manage the assets of institutional investors (such as pension funds, insurance companies, banks, foundations, charitable or state institutions) and/or private investors.
Asset managers use special mandates or funds to manage these assets, which in turn are subdivided into special funds for exclusively institutional investors and mutual funds for institutional and private investors.
DEVELOPMENT AND STATUS QUO
Asset managers manage more than EUR 85 trillion globally. The US market is by far the largest, with a share of around 60%, followed by Europe with a share of just over 30%. Asia’s currently still relatively small market size is indicative of the emerging market status of its countries. Its growth rate of around 24% p.a. over the last five years, however, is more than twice that of the US and Europe, which nevertheless continue to grow at a respectable and stable 10% p.a.
The asset management industry is characterized by a strong global market concentration. While more than 4,200 companies operate in this sector in Europe alone, the 400 largest companies worldwide hold more than 80% of all assets under management. The top 10% of this group, i.e. the 40 largest asset managers, dominate around 50% of the market, and the top ten asset managers account for a quarter of the market share.
FIT FOR THE FUTURE?
Zeb carries out a study on the well-being of the European asset management industry every year.
Resource Management and You Working with a resource director can assist your speculations with procuring and help you in arriving at your monetary objectives sooner.
“Resource the board helps the normal financial backer form toward their monetary objectives, regardless of whether that is a school reserve, another home or in the long run retirement,” says Anthony Pellegrino, a guardian council and originator of Goldstone Financial Group, in Oakbrook Terrace, Ill. “Working with somebody can comprehend your objectives, assets and requirements and working inside those to accomplish a monetary objective.”
Sources and References https://www2.ohchr.org/