What is Asset Management?

Asset managers are an interesting profession to learn about in finance, and particularly in investment banking. But how does one become an asset manager? What is their role? How do they work on a day-to-day basis?

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What does an Asset Manager do?

The Asset Manager manages a portfolio of assets on behalf of one or more clients. Their primary objective is to improve and maximize returns on their clients' investments. To accomplish this task, the Asset Manager develops investment strategies to be implemented and analyzes depreciation risks, enabling him/her to make informed decisions concerning the assets to be included in his/her portfolio.

What else does an Asset Manager do?

• Implement asset sale or investment strategies

• Analyze the performance of financial assets

• Draw up sector analyses

• Monitor construction projects

• Draft annual reports

• Manage the coordination of operations with the various parties involved

Why Asset Management?

Reporting to the Director of Investments or Asset Management (Portfolio Manager), the Asset Manager role is particularly attractive to business school graduates. However, it also requires patience and experience, which are built up over the course of a professional career. An entry-level portfolio manager works very quickly with asset management professionals and can therefore progress rapidly in his or her career.

What to expect when recruiting in Asset Management?

If you're interested in doing an internship in this field, it's imperative that you work hard on your application, as the selection process starts with a CV! Then, the selection process continues with tests (logic, mathematics, finance, management, English, communication) designed to eliminate candidates who are not suited to the position in question. An interview is then organized to finalize the process and select the perfect candidate. Sometimes, there may be two or three interviews to ensure the candidate's technical knowledge and skills. For example, if the candidate has worked on allocations before, then he or she will have an advantage.

In terms of remuneration, asset manager salaries are very attractive. On completion of a Master's degree (preferably in finance), the median salary is €40,054 gross per annum. After 5 years' experience, asset managers can expect to earn a median salary of €67,500 gross per annum (excluding bonuses), depending on their area of specialization.

Is a CFA essential for asset management?

Chartered Financial Analyst (CFA) certification is not essential to work as a Quant/Portfolio Manager. Nevertheless, it does provide solid technical skills across a broad spectrum. What's more, many investment bank clients ask for the percentage of managers with CFA.

Read more: Focus on the CFA (Chartered Financial Analyst)