Brief Asset Management Flashcards
What is Asset Management?
It is about <b>managing clients investments</b> and providing them with <b>strategies and expertise</b>.
The clients can be individual or institution who have substantial 大量的 investment income.
Examples of asset classes
Stocks, bonds, commodities, real estate, private equity, hedge funds
What is the role of Asset Manager?
Banks are able to offer <b>geographical expertise</b>.
Asset managers:
<b>Study clients’ needs</b>
➡️ Create an actionable <b>investment strategy</b> - <b>🌟Investment Portfolios</b>: different asset classes can be included in the portfolios. Depending on the <b>risk of a client’s profile</b>
➡️ <b>Implement the strategy</b> in practice
➡️ <b>Oversee</b> its development through time
Types of Stocks
Stocks Small-Cap (company with a market capitalisation of between $300 million and $2 billion.) Large-Cap Dividend stocks Stocks from growth regions
Types of Bonds
Maturity: With bonds, term to maturity is the <b>time between when the bond is issued and</b> when it matures, known as its <b>maturity date</b>, at which time the issuer must <b>redeem the bond</b> by paying the principal or face value.
Short maturity
Long maturity
Corporate
Government
An asset manager’s goal is to:
✅ Protect clients’ money
✅ Find profitable trades
✅ Maximise return, without taking extra risks
Roles within Asset Management Division
1️⃣ <b>Sales force</b>: responsible for <b>establishing client relationships</b> and <b>understanding clients’ needs</b>.
2️⃣ <b>Portfolio mangers</b>: who are ultimately responsible for <b>making investment decisions</b>.
3️⃣ <b>Research department</b>: people have <b>specific industry product or geographical expertise</b>. The mangers make decision based on the input of the research department.
