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.
J.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 management
Goldman 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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