How Asset Management Firms Help Clients Achieve Their Financial Goals

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Asset management firms take investor capital and put it to work in different investments, such as stocks, bonds, real estate, master limited partnerships, and private equity. These firms look at their clients’ circumstances, risks, and preferences to build an investment portfolio that best achieves their financial goals. Some firms have updated their offerings to serve smaller investors, high-net-worth individuals, and corporations.

They Help You Manage Your Money

Asset management firms help clients achieve their financial goals by investing in financial assets like stocks, bonds and real estate. They also assist their clients in making investment decisions and helping them manage risk.

Asset managers can charge fees based on commissions or a percentage of their client’s assets under management (AUM). These fees are typically progressive, decreasing as the amount of money in an account increases.

Typical asset management clients include corporations and high-net-worth individuals. These clients typically have minimum investable assets of $5 to $10 million, though depending on their needs, they may exceed that threshold.

They Help You Manage Your Taxes

Asset management firms like Caliber provide various services for high-net-worth individuals and institutions. These include check-writing privileges, credit cards, debit cards, brokerage services, and margin loans.

Firms also manage money market funds that offer higher returns than a regular savings account. Clients can choose Federal Deposit Insurance Company-backed (FDIC) and non-FDIC funds. To help clients achieve their financial goals, asset managers often recommend investments in stocks, bonds, real estate, commodities, and alternative strategies. They also work with their client’s tax advisors to determine if tax-loss harvesting could benefit them.

They Help You Make Investment Decisions

Asset management is investing a client’s money in shares, bonds or property. These investments may be managed by a portfolio manager or a specialized team of financial advisors. An investment manager’s main role is to guide investment decisions to create a portfolio that reflects a client’s time horizon, risk tolerance and financial goals. They can also consider a client’s moral and ethical values and personality to determine what investments are best for them. These firms typically cater to high-net-worth individuals, businesses and government agencies with significant investable assets. They offer a bespoke service that requires strong communication and analytical skills to meet clients’ unique needs.

They Help You Manage Your Insurance

Asset management firms offer clients various services, including investing, portfolio construction, and financial planning. They can help clients build wealth through various means, including traditional investments such as stocks and bonds and alternative investments such as real estate and private equity. They also provide insurance services, such as life, disability, and long-term care policies. They have the expertise to identify the best insurance for a client’s needs and recommend a policy that fits their risk profile and financial goals. To manage their business, asset managers must revamp their technology strategies and implement a digital infrastructure to help them operate efficiently and effectively. They must also rethink their operations and support functions, which often have legacy systems and siloed processes.

They Help You Manage Your Retirement

Asset management firms offer financial advice to a wide range of clients, including both individuals and institutions. Some focus on a single asset class or market segment, while others are generalists.

These firms manage portfolios that reflect an investor’s financial goals, time horizon and risk tolerance. They also provide portfolio analysis, tax planning and insurance services. An asset management firm’s three main categories of clients are mutual funds (or retail), institutional investors and high net worth. Most asset management firms have a distinct division specializing in each client type.