Asset Management: Presentation and Operation

The asset management offered by specialized companies called Asset Managers is to manage the money of investors to make it grow over the medium to long term. There are several hundred of these management companies, the largest of which are subsidiaries of major banks.

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What is asset management?

The asset management is to manage funds entrusted by investors in order to obtain a more or less income and record gains on a more or less long term.
This expression is synonymous with portfolio management and Asset Management, in English.

An Asset Manager is a company, a subsidiary of a bank or an insurer, which creates and manages the investment products, offered by banks and insurance companies: SICAVs and mutual funds.
Individuals and companies can entrust money to this type of company to manage it, in compliance with regulatory and contractual constraints.

Today almost all banking or insurance institutions have a subsidiary of Asset Management.
Assets under collective management by Asset Managers totaled 1098 billion euros and 480 asset management companies were registered .
However, this sector is dominated by a few large companies such as Ixis AM, Credit Agricola Asset Management, AXA Investment Managers, Society General Asset Management and BNP Paribas Asset Management .

Both types of management

There are two types of asset management for third parties:
– the collective management which offers mutual funds (that is to say of products for many wearers who buy shares as the SICAV and FCP)
– The management under mandate that goes through a contract between the management company and a client.
The management mandate is for one client only, but the manager may include collective management products in his or her mandate.

The managerial profession

A portfolio manager has a mission to make the capital of its clients grow with a minimum of risk.
To do this, he buys and sells securities (securities) on behalf of his company.
Asset management professionals are often specialists in one type of financial product (Sicav, equities, bonds, etc.) or a market (France, Europe, North America, etc.).

The different products managed

The aim of asset management is to make funds grow by investing in equities, bonds, treasury sicav or hedge funds.
It is therefore possible to distinguish between:
– the management of equities where the money is mainly invested in equities
– the management of interest rate products (bond and money products)
– diversified management investing in different asset classes, Activity and different geographical areas
– alternative management , which consists mainly of Private Equity or hedge funds.