What is Asset Management?

Many have been asking. Few understand. Hopefully this post clarifies.


Let's start with the apophatic definition.


Asset management is not real estate.

Asset management is not operations.

Asset management is not wealth management.


So what is Asset Management?


Asset management is active investing. Stock/Bond picking. Think Peter Lynch and Bill Gross. Traditionally, this is working for a large asset manager like Fidelity or T Rowe Price. The job is similar to hedge funds but the company structure is different. Asset managers manage mutual funds and similar products for clients. Hedge funds usually run a few strategies at most and sometimes less products. Asset management firms may have 50 strategies and products.


The industry is uber competitive. The large players in equities are T Rowe Price, Fidelity, and Capital Group. They all take less than 5 interns a year at the undergrad level. They used to only hire from m7 MBA programs. Pod boys want these jobs. You work 50-60 hours a week with similar pay and less stress. Job stability is great. Turnover is low.


Thanks for coming to my ted talk.

 

Based on the WSO Dataset, Asset Management is a sector within the finance industry focused on active investing, which involves stock and bond picking. This field is distinct from real estate, operations, and wealth management, emphasizing its unique role in the financial landscape. Professionals in asset management, akin to figures like Peter Lynch and Bill Gross, typically work for large asset managers such as Fidelity or T Rowe Price, managing mutual funds and similar products for clients. While there are similarities between asset management and hedge funds in terms of investment activities, their company structures and the breadth of strategies and products they manage differ significantly. Asset management firms may offer a wide array of strategies and products, potentially numbering up to 50, in contrast to hedge funds, which usually focus on a few strategies and sometimes even fewer products.

The asset management industry is highly competitive, with major players in equities including T Rowe Price, Fidelity, and Capital Group. These firms are known for their selective internship programs, often taking fewer than five interns a year at the undergraduate level and traditionally hiring primarily from top MBA programs. Positions in asset management are coveted for their work-life balance, offering 50-60 hour work weeks with competitive pay, lower stress levels compared to some other finance roles, job stability, and low turnover rates.

Sources: Is asset management underrated?, Why Work in Asset Management?, Asset Management vs Investment Banking 101, AM vs HF: The Business of Our Business, Difference between Asset Management vs Investment Management?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

So cringe when people come on this forum to tell us about how everyone wants the industry they are in, and how competitive it is as a result.

AM is easier to break into than the HF industry. Not everybody wants to run a mutual fund. Comp is not similar between AM and HFs in the way that people talk about HF comp (potential to make $$$$$ if you're super smart).

I think AM is super cool. But this is cringe.

 

Aspernatur voluptatem a fugiat iusto molestiae. Possimus ipsa et molestiae maiores facilis. Eos sit rerum doloribus in cumque est dolorem. Doloremque ipsa accusantium quo consectetur reprehenderit nihil modi. Temporibus velit et et dolorum.

Sunt id est reiciendis nihil ducimus. Aut deleniti iste tempora reiciendis adipisci. Qui corrupti quis reiciendis at illo.

Deserunt dolor dicta corporis sint at. Enim sed quos quia. Est voluptatem ex ut vel ex architecto nisi voluptates.

Voluptatem et minima maxime sit odit expedita quia. Et maxime ea dolorum tempora.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”