Asset management is a term often reserved for the overseeing of assets on behalf of a business or for wealthy clients with significant and various assets.
A financial planner, CPA, or estate attorney who is capable of assisting a client with various types of assets and their optimal arrangement for that client’s goals can be said to be in a business of asset management. Tax considerations and cash flows may be a larger consideration with asset management than with investment advising.
The term refers to the manner in which an investor or advisor handles the allocation of various asset classes within an overall portfolio. Businesses may also have portfolios or assets which includes equipment, subsidiaries, and facilities, in addition to traditional investments.
Banking institutions, financial companies, and government entities may have assets that include the cash flows of interest repaying loans they have made or accounts receivable from utilities services, and so on. Such cash flows are assets, and these can be swapped, traded, and managed in ways that can’t be done on a smaller scale.
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