Asset management refers to handling all aspects of the financial, capital and administrative operations of an assigned portfolio. An asset manager oversees the investment of their client's finances in order to achieve specific financial objectives. They can use various means to achieve these goals, like utilising mutual, hedge, pension, and retirement funds. In addition, they can use various financial vehicles including futures, options and derivatives.
Asset managers will discuss a client's position and objectives, determining the client's risk appetite (how much risk they are willing to operate with), before determining the best strategy to manage the funds and ensure that the financial goals are reached. Asset managers usually work with a team of other professionals to manage a fund. Each fund typically has financial analysts who research equities and investments, economists to predict the direction of the economy and the market, sales executive to sell the fund, traders who execute orders and accountants who track assets. Working in this industry often means operating in a high pressure, competitive environment where the financial stakes are high, so it's not a role for the faint of heart.
Asset managers are responsible for overseeing leasing agents and local third party property or other investment managers. They are required to propose objectives and goals for each portfolio, assisting with operating budgets by becoming involved in the preparation and approval process. They may need to conduct reporting on the portfolio monthly, quarterly and annually, as well as conducting a monthly review of operating statements. Asset managers also need to undertake market studies and research, perform financial analysis and conduct industry standard reporting on topics like cash flows and variances.