Difference Between Asset Management and Wealth Management?
Okay, I know this might be a dumb question, but is there a difference between global wealth management and global Asset Management?
If so, what is it?
Thanks in advance!
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Yes. Simply put, Wealth Management tends to equate to managing individual investor money and Asset Management will be more of working for and managing "Asset Funds" like Hedge Funds, Private Equity Funds and the like.
If you need more clarification, just ask, but that's the rudiemtary answer to your question.
ok thank you, this generally clears things up for me. im still not sure what exactly the role of an analyst in asset management would be. say at one of the big banks? how would the day to day be, and how would it differ from wealth management?
thanks for all of your help by the way. repped.
never mind, i dont know how to rep. thanks anyways though lol
Wealth Managment would be if you were a financial advisor for middle/ upper class families. So think your working on all of a familys finances (credit Cards, mortgage, equities, bonds, life insurance, etc.)
Asset management would be running an iShares fund such as the MSCI Brazil Index (EWZ). So therefore you would be looking into which companies in Brazil to buy and hold for the fund (more of an equity research role).
PWM vs AM (Originally Posted: 02/26/2010)
I've searched the boards but have found nothing too comprehensive.
Besides the types of clients, what are some main differences between the two? Why would one want to go into AM besides the fact they are dealing with more capital? What qualities in character or skills are different or are they the same?
I have worked 2 PWM internships and have a AM one coming up and would like to have a set approach.
Thank You
I am interested in this question also. Is there any difference between research in AM and PWM? In the PWM the analyst is talking directly with the client?
Private wealth management concerns the portfolios of high net worth clients. Asset Management is a broader term that encompasses certain funds managed by the asset management firm (such as ETFs, mutual funds, etc.). PWM is more concerned with providing individual portfolio returns while AM creates a marketable product.
notbirdman,
Are you sure that AM creates a marketable product? I've read that PWM is more marketing...
Marketing is different than a marketable product.
Is there any characteristics or skills that I can really emphasize for AM?
What approach in an interview could one take to transfer from PWM to AM?
Thanks alot
Short is right, marketing is different than a marketable product. There's a marketing aspect to PWM and AM. For PWM it's mostly going out there and attracting clients to invest their money with a firm or FA. For AM it's wholesalers going out to institutions/individuals/brokerage houses and selling investment products/funds.
As for skills to be emphasized for AM...probably as an entry-level applicant you'll want to emphasize working in teams. There's 0 chance that you'll be making investment decisions right out of the gate, so if you demonstrate an ability and history of working well with others in a professional atmosphere then it'll be a benefit for you. But it depends on what level you're trying to make the switch. If it's for internships it shouldn't be that big a leap, but a lot of it is dependent on what you did as an intern in PWM. Making phone cold calls on behalf of your boss is a lot different from doing research for your boss on prospective investments.
PWM sells products that AM puts together to individuals / small institutions / foundations. Thats the relationship between the two.
PWM is a Financial Advisor managing a rich client's portfolio. The FA might invest the client's money in stocks and bonds, or he might buy products (like managed funds) from an AM fund like BlackRock.
The AM firm is responsible for research, development, and management of investment products.
The PWM group is responsible for attracting clients, determining their needs, and investing their money in a way that fits their profile (from managing trust funds and retirement accounts to managing client portfolios that want aggressive growth, and everything in between).
Does PWM ever choose securities to invest in? Or do they outsource the job?
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