Understanding the roles within an Asset Management Division
I am trying to understand exactly what (Graduate) roles are available within the banks' Asset Management Divisions. Taking the example of Goldman Sachs: GS has a Merchant Banking/Private Equity Division which comprises its Buy side activities. In addition GS also has a separate Global Investment Research division. So what does its Investment Management division do exactly?
Does Asset Management Division in a large BB automatically mean Buy side?
Some banks (Like GS) do not have separate sales positions. Can it be that applying to AM I end up in Sales or Structuring?
So is AM basically a mutual fund within a bank, which has various Investment Manager roles within it or is it Sales+structuring?
Thanks!
Asset management division means buy side. Sales, as the name would imply, is sell side, so if you apply to the AM division there's no risk you'll end up in sales (you might, however, spend some time marketing mutual funds, which is a very different kettle of fish). AM is not just a mutual fund within a bank - AM is lots of mutual funds within a bank, along possibly with hedge funds, PE funds and PE fund of funds.
Thanks, its more clear now. Not sure why Goldman separates Private Equity and PE fund of funds into two separate divisions though.
Well, a FoF essentially analyses other funds to see which one would be best to invest in. So, you could see it as due diligence of funds. A PE fund does the investing itself.
Separating makes perfect sense :).
If you go to Goldman Sachs career website it has the clear subdivisions of its Asset Management Divsion.Hedge funds,PE,Funds of Funds etc.I believe that there are sales people there,but they are pure sales,selling/promoting mutual funds etc to clients,and not sales traders that you will find in an investment bank.
What is Asset Management (Originally Posted: 10/11/2011)
I interned at a Big 4 last year and hated it so I'm looking for a career change and Asset Management sounds interesting. Can someone explain what exactly an Asset Management job involves? How is it different from IBD?
Is doing AM in an IB the same as doing AM in BlackRock?
What are the hours/salaries like for a first year analyst coming from undergrad?
Are AM positions divided into industries? I heard that BlackRock has Private wealth management / global wealth management; can someone tell me what the difference is? Which pays the most?
Any information of this sort would be really appreciated.
Thanks!
http://en.wikipedia.org/wiki/Asset_management
http://en.wikipedia.org/wiki/Investment_banking
Read through those, then try the search function for further clarification.
Done and done. Wikipedia is too general and this forum is too specific. I read somevery informative stuff on Mergers & Acquisitions website but any other information would be appreciated.
In general, asset management is about managing investment assets for a group of clients. There are two primary types of clients 1) individuals (aka retail) 2) institutional.
Individual clients are people like you and me, while institutional clients are generally pension funds and endowments.
In asset management there are typically three groups of people in a firm 1) the investment team 2) the sales and marketing team, 3) operations.
The investment team, as the name implies, is responsible for selecting the securities in the fund and executing the fund's strategy. The sales team are the people who go out and market the fund to potential investors and service existing clients. Finally, operations...well are operations (back office, trade reconciliation, fund admin, etc).
Hope this helps.
This sounds like a glorified financial advisor. What's the difference?
generally financial advisors are the "retail" clients of asset management firms. indivs are referred to as indivs. most firms don't have sales team that market to indivs, that's the financial advisors job.
I am assuming you are referring to a financial advisor at a place like Merrill Lynch or Smith Barney. If that is the case, then the difference between a FA and asset management are as follows:
-Asset management is typically associated with selecting individual securities as part of a a single strategy portfolio (i.e. large cap value equity, corporate bonds, etc). Think mutual funds.
-Financial advisors help clients, typically individuals, select an asset allocation strategy to meet the client's risk and return tolerance via a diversified portfolio. The FAs are telling clients which asset managers to invest with and what percent of the client's assets should be invested in the various funds.
What do you do in asset management? (Originally Posted: 04/21/2011)
Can someone explain what you do exactly in Asset Management? At a place like BlackRock
Depends completely on your role. Marketing / research / trading / auditing / etc. Can you be more specific?
Development and marketing of new funds.
Also remember that Private bank and wealth management all fall under Asset management. So like (above me said) it depends.
That's a very good question with many different answers. In my first job out of college, a senior manager in my company gave me the best answer: "Use the Search Function."
this and read my sig. and you're good to go.
I've heard that the guys in Asset Management manage assets... not sure, though, anyone else?
Asset Management - Employee Roles (Originally Posted: 04/27/2010)
Hello Everyone,
Can any one break down how an Asset Management Team works? (For example: Within Asset Management, is there a sales team, operations team, management, portfolio managers)
When you apply for an entry level job within Asset Management should you specify where I want to start?
Any insight would help.
Snookie,
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