What is an asset manager?
An asset manager is a professional who is responsible for investing and managing capital according to an agreed strategy. This can cover everything from shares and funds to interest-bearing assets and alternative investments. The manager analyses the market, adjusts the portfolio and makes ongoing decisions to achieve the best possible development with regard to risk.
In practice, an asset manager may work for banks, management companies or as an independent adviser. The management can be discretionary, where the manager makes the decisions, or advisory, where you as an investor receive recommendations and make the decisions yourself. Whatever the form, the role is based on combining analysis, strategy and risk control.
Asset management in practice
Here are some key elements that make it easier to understand how asset management works in practice:
- Manages capital according to an agreed strategy
- Adapts investments to goals, risk level and time horizon
- Follows up on performance and rebalances the portfolio on an ongoing basis
- Makes decisions based on analysis and market insight
- Works either on a discretionary or an advisory basis
- Is usually paid through charges or fees
Understanding these elements makes it easier to assess how asset management works and which form suits different needs and goals.
Assessing asset management
Worth bearing in mind
When you hire an asset manager, it is important that their strategy suits your goals and your risk level. A good manager takes into account your time horizon, your finances and how much fluctuation you are comfortable with. It is also wise to look at how reporting, follow-up and communication work, since clear updates make it easier to follow performance over time.
It is also good to understand the costs. Asset management can involve fees based on the size of the capital or on the results. The cost structure affects the return and should therefore be transparent and reasonable. A well-chosen asset manager can contribute structure, analysis and security to your investments.
Frequently asked questions
What does an asset manager do?
They invest and manage capital according to a strategy adapted to the client's goals and risk level.
Is asset management the same as advice?
No. Asset management means that the manager handles the investments, whereas advice means that you receive recommendations but make the decisions yourself.
How do I know whether I need an asset manager?
It may be relevant if you want professional help, lack the time to follow the market or want a structured long-term strategy.
How do asset managers charge?
Fees based on the size of the capital or on the results are common. It is important to review the cost model carefully.
Can asset managers invest in unlisted assets?
Yes. Some also offer alternative investments as a complement, but it depends on experience, mandate and regulation.