Tips for Hiring Asset Managers

Asset managers are devoted to investment management entrusted by clients, individuals, or institutions (pension funds, mutuals, insurers, etc.). Depending on the type of management, these investments may be housed in legal envelopes, and are invested in highly diversified products such as bonds, commercial paper, equities, real estate, or riskier securities such as derivatives.

Types of asset or portfolio management

There are several types of portfolio management, all differing in their legal nature, including:

  • Collective management, often called fund management, where the investor holds units of a fund. It is the prospectus that defines the rules between the manager and the client.
  • Mandated management where the investor delegates the entire management of his or her portfolio to a manager. That could include a financial professional approved by the bank, insurance company, management adviser independent wealth, stockbroker, etc.
  • Advised or assisted management that allows a client to manage their portfolio while benefiting from the proposals and recommendations of a specialist. Here the investor retains their power of decision
  • Managed management, which allows funds to be distributed according to the orientation chosen by the investor

Different management styles

There are also various products under management and, therefore, different management styles:

  • Diversified management
  • Alternative management
  • Stock management
  • Equity management aims to select securities based on a potential forecast to the industry and macroeconomic forecasts.

In a world of global competition, companies are striving, more than anything else, to align information systems with the business to facilitate development strategies and enable the timely launch of products and services. Moreover, at a time dominated by an endless financial crisis, companies are looking to reduce costs by optimizing their lower-budget investment strategies. To be successful, investors must listen to key arguments and messages that any portfolio executive can use from their branch to promote the return on investment.

Choosing a professional you can trust

An investor needs to know what they want to do with their money. Many people will blindly go to a management professional and have them invest the capital. As any expert will tell you, this doesn’t always work out in the investor’s favor. Contact Kirk Chewning to learn more.