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.

syntheticshit:
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:

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Comments (14)

Dec 1, 2009 - 4:24pm

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...

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May 23, 2015 - 4:09pm

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'

  • Anonymous Monkey's picture
  • Anonymous Monkey
  • Rank: Chimp
Sep 17, 2015 - 5:12pm

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.

Sep 17, 2015 - 5:13pm

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
"

Sep 17, 2015 - 5:18pm

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