Put simply, investment management firms invest their clients’ money. They choose the right selection of investments - from fast-growing, risky stocks to safe but slow-growing bonds. The aim is to achieve the return the client needs at a level of risk they’re comfortable with.
Investment management firms take on all the effort of creating an investment portfolio for their clients and open up new investment opportunities that wouldn’t otherwise be available.
Investment management firms work for all different types of client. Some focus on wealthy individual investors. Others work with companies, charities, trusts or major corporations.
TYPES OF INVESTMENT MANAGEMENT FIRMS
Large investment management firms, such as BlackRock, manage assets running to trillions of dollars
Boutique firms are smaller and sell themselves on their quality people and personal touch
Specialists offer investment expertise in a particular area, such as private equity or investing in art. They may be employed by other investment management firms
Investment banks such as Goldman Sachs tend to have large, well-developed asset management divisions