Asset management firms are fund houses that pool money from a variety of streams and allocate and grow capital on behalf of their investors.



Overview

General Responsibilities

Asset management strategies are tailored to align with clients' unique needs and objectives. Universities have endowments, charitable organizations have foundations, public sector employees have pension funds, and state entities have sovereign funds.

In some cases, smaller asset managers may handle asset class allocations in-house while outsourcing the actual investment management to other specialized managers. For instance, a firm might allocate 30% of their portfolio into equities, 80% of that into U.S. companies, and 35% of that into mid-cap, and so on. These directives are then communicated to another asset manager responsible for selecting individual holdings for the initial firm.

Recruitment in the asset management field varies depending on the specific role and type of fund, with technical questions reflecting these differences. Candidates should become familiar with the fund's holdings, investment philosophy, and overall approach. Asset allocation questions are particularly relevant for investment roles within this industry.

Examples

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Mutual Funds

Mutual funds are investment vehicles that allow investors pool their capital with numerous other investors and to mutually invest it in various financial instruments, including stocks, bonds, and real estate.

These funds typically provide a wide range of investment options, such as sector-specific, regional, or asset class-focused funds, enabling small or individual investors to access professionally managed portfolios.

Mutual funds are actively managed by professional portfolio managers who are responsible for allocating the fund's assets in a manner that aligns with the investment objectives outlined in the fund's prospectus. Investors have the flexibility to buy and sell mutual fund shares either through a brokerage account or directly from the fund company.