Asset management is an important piece of the Wealth Management puzzle that focuses on the
client’s investment portfolio. An asset manager (sometimes referred to as an investment
manager) recommends, implements, and does ongoing reviews of their client portfolios based
on each of the clients’ unique situations.
Why is asset management important?
When working with an asset manager, the client has a credentialed investment expert on their
side who will work with them to first establish their goals and how their current financial situation
can help meet those goals. Once the goals are established, an asset manager will recommend
a broadly diversified asset allocation for the investment portfolio.
The next phase handled by the asset manager is to implement the recommendation. This
includes researching and selecting investments, and executing the trades (or for private
investments, handling the paperwork and money transfers) on the client’s behalf. This process
of review and implementation should be continuous. As various factors change, such as market
conditions, risk tolerance, or other life events, the asset manager will review and update the
portfolio accordingly.
How can having an asset manager help you?
Some other benefits of having an asset manager can include lower trading costs, access to
alternative or private investments, and access to research that may not be available or free to
the public. Most importantly, it allows people to delegate the work and stress that comes with
investing to their advisor. The asset manager rebalances the portfolio as markets rise and fall,
adhering to a disciplined approach that seeks to limit emotional decision-making while keeping
the focus on fundamentals.
Conclusion
At Foster & Motley, we pair our clients with both a financial planner and investment manager to
ensure they are receiving a comprehensive and cohesive review of their financial life. Working
with a team of advisors can help you achieve your goals and offer peace of mind that you are on
the right track. If you have questions about your unique situations, please reach out to the
Foster & Motley team.