Difference between Asset Management and Investment Management?
Investment and Asset Management
Many of our users feel that investment management and asset management can be used interchangeably; however, some feel that there are distinctions between the two divisions.
One external source describes asset management as any broad entity that oversees things of value to a given group.
Investment management on the other hand is defined as the professional asset management of financial securities.
Another user shared:
The financial industry makes use of the phrase "Asset Management", but it is done inappropriately.
Asset Management connotes something more passive: a custodial and care-taking function over assets under administration - for example, the management of physical plant and equipment is asset management. To apply this term to fund management or discretionary management of financial portfolios is inappropriate.
Investment management connotes something more active: that is, discretion as to the investment decision. This means the action of deciding whether to buy, sell or hold the asset.
Asset Management Division vs. Investment Management Group
Our users denoted that some firms break up investment management and asset management different.
syntheticshitJ.P. Morgan: Asset Management has the Private Bank and Investment Management underneath it, where PB/PWM is in the first group and Investment Management is institutional asset managementGoldman Sachs: IMD (Investment Management Division) has PWM and GSAM underneath it, with GSAM being the rough equivalent of JPMIM.
Check out some more links on WSO about this topic:
- Difference between asset management and private wealth management?
- What is the difference between Asset Management and Investment Managament?
- Investment Banking v. Asset/Investment Managment: Pros & Cons
- Difference between investment management and wealth management?
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From my understanding its the same thing. Some banks call it investment management some call it asset
i believe that asset management is often used to include two main subsections: investment management and private wealth/private banking. the former dealing wit institutions, the latter with individuals. would like to hear some industry "insiders' " definitions tho...
Not really a difference between the two but if Ihad to classify them:
Asset Management: institutional money management i.e mutual funds
Investment Management: private wealth management, investment advisory, private banking
At GS investment management is the division and it's split in two: PWM and AM
Most asset management companies combine them together, which means they are basically the same thing
can anyone else weigh in on this further? maybe some more details as to how they are the same and when they are different? are there certain firms that do have distinct meanings? thx alot
Investment Management vs. Asset Management The terms investment management and asset management are interchangeable. They refer to the same practice, the professional management of assets through investment. Investment management is used more when referring to the activity or career (i.e., “I’m an investment manager” or “That firm is gaining a lot of business in investment management”), whereas Asset Management is used more with reference to the industry itself (i.e., “The asset management industry”).
From 'Vault-Career-Guide-to-investment-Management'
The financial industry makes use of the phrase "Asset Management", but it is done inappropriately.
Asset Management connotes something more passive: a custodial and care-taking function over assets under administration - for example, the management of physical plant and equipment is asset management. To apply this term to fund management or discretionary management of financial portfolios is inappropriate.
Investment management connotes something more active: that is, discretion as to the investment decision. This means the action of deciding whether to buy, sell or hold the asset.
Is Investment Management similar to Asset Management? (Originally Posted: 08/09/2010)
this is their description below.
"Work will include investment analysis, update monthly analysis sheets, improvement of analysis sheets, portfolio management etc"
"Strong Skills with Excel and ideally basic knowledge of VBA. Knowlege of basic finance topis "
Looks like a standard IM analyst stint. Definitely not BO.
Do you know the type of experience you would get in this type of work? Would it be very similar to financial modeling?
doesn't sound like BO, could be MO though
Asset Management/Investment Management (Originally Posted: 01/15/2012)
What is the difference between Asset Management and Investment management at BB firms?
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