Asset Management Within an Investment Bank

Hello,
I am currently getting acquainted to the activities of an Investment Bank, particularly within the S&T Division. I am having trouble understanding the exact role of the Asset Management division within an Investment Bank.
My understanding is that the Markets division (i.e. S&T etc.) conducts trade execution, market making and occasionally prop trading. These activities are conducted for the buy-side (bar prop trading), i.e. asset managers, pension funds, corporates.

2 Questions arise from the description above:
1. Do the Asset Management divisions of Banks solely use the services of the sell-side of the same bank, or is this prohibited? In other words, is the Asset Management division of a Bank also a client of its Markets division? Are the clients of the Asset Management division of say GS the same as those of a major Asset Manager like BlackRock?

  1. Can Asset Managers, Hedge Funds etc. only trade through investment banks? If not, why do they do it, given the commission of brokerage fees? Is there cutting-edge technology that banks provide that cannot be rendered by, say an Interactive Brokers, or does Interactive Brokers even execute trades through an Investment Bank? In other words, what leverage do investment banks to intermediate trades?

Any help is greatly appreciated.

SAbru

 

Ipsum hic non cupiditate sit. Accusamus excepturi dolor aut quia vitae vel voluptas molestiae. Sit fuga tempora tempore. Dolorem aut asperiores temporibus voluptas debitis quibusdam. Dolor eum repellendus rem eum cum atque excepturi.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
GameTheory's picture
GameTheory
98.9
9
bolo up's picture
bolo up
98.8
10
DrApeman's picture
DrApeman
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”