What is Asset Management? Definition and Overview
Asset management is the process of managing investments to get the highest return possible. An asset manager is responsible for coordinating an individual’s or business’ assets (investments, properties, etc.) and expanding their financial portfolio.
In the financial world, asset management is slightly different.
Basically all finance professionals are asset managers; it is their job to understand the smartest way to handle their investments.
Asset management in corporate finance involves ensuring that all investments are operating at the highest possible potential.
In both scenarios, asset management is a way to get maximum value out of one’s investments. The better an individual’s or corporation’s assets are managed, the more return on investment they will see. Asset management is generally only an option for the wealthy, as the cost can be steep.
What can an Asset Manager do for a Business?
• Brainstorm creative solutions to investment management problems
• Apply technical expertise of the investment market to utilize available resources
• Help executives understand where their money is going and for what purposes, in terms that non-financiers will understand
• Analyze financial issues within the business to find the best possible solution
• Utilize already existing resources within the business in a way that generates the greatest return on investment
• Increase productivity and success by applying specialized knowledge and skills