Navigating the Global Economy

CEO John HailerThe world of global finance grows larger every year, and with this growth comes new opportunities. Some investors are guided through the treacherous seas of finance by teams who are designed to manage their money effectively. Asset management may be out of reach to the ordinary investor but the concept behind it is simple, and it begins and ends with a few questions.

What is Asset Management?

Asset management is the activity that allows investors to achieve the full value potential available for the different assets that they own. An asset can be many things, it can be an item or an entity, and it may have actual value or have only potential value for its owner. Asset management usually provides investments and offers that are not available for average investors and, as a result, the service is usually restricted to individuals or organizations with high net worth. Asset management is the combination of rules governing management, and the best practice for working to manage wealth in a way that both benefits the investor and operates within an acceptable level of risk.

How Does Asset Management Work?

Asset management is usually taken care of by large and well-funded firms like Natixis Global Asset Management, which is run by CEO John Hailer. This service usually allows investors to both deposit and manage their money with one institution rather than using multiple groups to manage their assets whether they are liquid, equity, real estate or international investments. This organization will usually invest on behalf of their clients as well as manage their maintenance or disposal effectively. Asset management teams usually charge a fixed percentage fee depending upon the amount of money or assets being managed in that account.

Wealth Management vs. Asset Management

Asset management and wealth management are two branches of the same tree. Wealth management is the direct management of an investor’s money through a management firm. A wealth management team will operate similarly to how an asset management team will work. A wealth management team will usually be able to provide all available investment and divestment opportunities available on the market as well as specific opportunities for individual clients that are particularly suited for their portfolios. The difference here is that wealth management is usually just the management of an individual investor’s capital or assets, whereas an asset management team can work to manage a collective group of investments.

The Right Questions

Thinking about asset management requires asking the right questions regardless of what stage in the process the investor is at. It is important to consider the real state of any owned assets and the risk to their futures. It is also important to consider the level of service that will be required to manage the account. This is where the decision between the services provided by wealth management and asset management must be made. Ultimately, all the questions asked should lead to answer regarding what the best long-term strategy is for both the investments and the client.