difference between investment management and wealth management?

jliu11's picture
Rank: Chimp | banana points 2

whats the difference between those two? is investment management similar to Asset Management?
thank you!

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Comments (8)

Jul 31, 2015

investment management=asset management

Jul 31, 2015

Does Asset Management imply that the asset manager makes the decisions with the assets rather than recommending them to the client and the client giving them the go ahead to do so? I'm working for a self-described investment advisory firm and we handle the movement of money to the different funds we invest in but don't do so without first pitching funds to clients.

Jul 31, 2015

at the simplest level, you are giving guidance/making decisions on people's money, either on a discretionary or non discretionary basis. what you described is non discretionary (need client approval) wealth management (aka PWM).

you guys are reading too much into this. investment/Asset Management are too broad. you could say PWM is asset management, you could also say a hedge fund is Asset Management, yet the two are completely different. a better question would be "what are all the areas of asset/investment management?" which happens to be in the FAQ.

    • 1
Jul 31, 2015

How I see it is Asset Management/investment management is a broader term used to classify any service/fund that manages a portfolio(regardless of asset class) for clients(regardless of type, net worth, etc).

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Aug 3, 2015

Pay is generally better in IM than in PWM. This is not my opinion, but is based on the CFA compensation survey. See page 20 of the following report:

Notice that High Net Worth median comp is well below the Mutual Fund comp. The gap is not small ($245k vs. $150k)

Aug 3, 2015

Actually, the typical MD in PWM at a BB firm is making 1.5-3million. Just from my interaction with these people though....others may have heard differently.

Aug 3, 2015