Investment Management is the professional management of securities such as shares, bonds etc and assets such as property with a view to achieving specific investment targets for the benefit of investors.
Investors could be large institutions such as Pension funds, insurance companies or small private investors.
The term Asset Management is often used to describe the investment management of a number of investments, whereas the term fund management may be used to describe forms of institutional investment. Many advisers who specialise in advice or management of investments for private, normally wealthy clients will often refer to themselves as involved in Wealth Management or Portfolio Management.
A financial adviser specialising in this area of investment or wealth management is generally one of financial analysis, fund and asset selection, and share selection followed by drawing up an investment plan and implementing it and then monitoring the funds on an ongoing basis.
The Investment Management Business is an extremely large worldwide industry and looks after trillions of dollars, pounds, euros, yens and most other currencies you care to mention. All coming under the general term of Financial Services, the industry has in it’s employ millions of people globally and creates billions in revenue.
The actual business of Investment Management is multi-faceted including the employment of professional fund managers, researching, dealing, marketing, valuing, auditing, settlement and compliance. Compliance being one of the more important as the company compliance officers ensure that all the work, advice and actions undertaken by the others fall within the bounds of the current financial legislation and controls. Many investment management companies have many thousands of clients and the size of their company is commensurate with this.
What happens when you employ the services of an investment management company? There is a vast array of financial products on the market and choosing the right investment product that best suits your own personal circumstances is a frightening task. Investment Management Companies with a provable track record in attaining long term growth, can help you maximise your wealth, as well as supplying valuable advice on portfolio management, trust and estate management, tax planning and inheritance tax planning.
Investment Management Companies work with and alongside many other financial institutions and have an plethora of financial tools available to them. They will start by analysing your current financial situation and circumstances including any current investments, pension provisions and insurance plans. They will discuss with you your goals and long term financial aspirations together with your attitude towards risk and reward before coming up with a strategy for your future plans.
The report that you will be provided with will be able to propose options on how to improve your present strategy with regard to stock market investments, structured savings and investment products, retirement plans, property management and possibly even tax structuring and inheritance tax. This will be your guide for your financial future and your adviser will remain with you over the years and be able to provide you with current advice on where the most appropriate areas for your investments are and give you the statistics and figures you require to monitor the ongoing performance of your investments.
To find out more about Investment Management, take a look at Heartwood Wealth. This article, Investment Managment Comapnies And What They Do is available for free reprint.