DEFINITION OF ‘ASSET MANAGEMENT’
1. The management of a client’s investments by a financial services company, usually
an investment bank. The company will invest on behalf of its clients and give them
access to a wide range of traditional and alternative product offerings that would
not be to the average investor.
2. An account at a financial institution that includes checking services, credit
cards, debit cards, margin loans, the automatic sweep of cash balances into a money
market fund, as well as brokerage services.
Also known as an “asset management account” or a “central asset account”.
INVESTOPEDIA EXPLAINS ‘ASSET MANAGEMENT’
1. The expense of this service generally restricts it to high net-worth individuals,
governments, corporations and financial intermediaries. This includes such products
as equity, fixed income, real estate, agriculture and international investments.
2. When individuals deposit money into the account, it is placed into a money market
fund that offers a greater return that can be found in regular savings and checking
accounts. The added benefit to individuals is that they can do all of their banking
and investing at the same institution instead of having a bank and brokerage account
at two different companies.
These types of accounts came about with the passing of the Gramm-Leach-Bliley Act in
1997, which replaced the Glass-Steagall Act. The Glass-Steagall Act was created
during the Great Depression and did not allow financial institutions to offer both
banking and security services.