Looking after financial assets is the task of asset management. The term “asset management” is often used for this activity today. According to banking supervisory law, the correct designation is financial portfolio management. Asset managers make active investment decisions for private and institutional investors . Scottsdale private wealth advisors buy and sell stocks and other financial products, but also tangible assets such as real estate. The decisions made depend on the wishes and goals of the customer, especially when it comes to weighing up risks.
Asset management for private investors
Private investors often simply do not have the time to get the necessary overview of the financial markets. In addition, they lack the expertise to identify opportunities and make the right purchasing decisions. To do this, they can rely on the services of asset managers.
In contrast to asset or investment advisors , they not only provide information about the products and make recommendations for stocks and funds, but rather act and trade actively in the markets in the interests of their customers. It is important to know that this job title is not legally protected and that this title can be found on the business cards of employees of less serious financial service providers. But that is more of an exception.
Asset managers in the banking sector
Renowned private and commercial banks employ excellent asset managers who act on behalf of bank customers. In order to be able to use this service, however, the investor must have a larger amount of capital. Only then will his portfolio be professionally managed by a bank’s asset manager.
Asset manager for real assets
The asset management for property values has a more extensive portfolio of tasks than the traditional asset management . In the case of an alternative investment fund on the subject of real estate, the task of management begins with the selection of suitable properties. The property manager is responsible for letting and re-letting.
The scope of duties ranges from the conclusion of the contracts to the control of the takings. In addition, the attractiveness of the property must be maintained with extensive maintenance measures in order to ultimately achieve the best possible sales price. If necessary, the asset managers are also responsible for converting the use and initiating the necessary renovation measures.