Having a built up portfolio of assets is all well and good, but managing a large portfolio is easier said than done, and often takes up significant chunks of time.
Asset managers and asset management companies like GAM exist to help their clients manage their portfolios and make investment decisions based on extensive research. Here are some of the factors to consider when choosing an asset manager.
Research the Company
With any asset manager, the first thing you should check is their credentials. This will determine whether they are legitimate, and give you an insight into their experience and what they can do for your investment portfolio.
Asset management firms usually have numerous advisers who may specialise in different fields of investment, so it is worth seeing what the firm’s capabilities are and how they may cater to your specific requirements as an investor. It is also important to know exactly how they operate and go about investing your capital.
Another consideration is how well established the asset manager is, and what their history of asset management looks like. If they are currently managing assets for thousands of clients and have good testimonials on their site, then the chances are they are an effective and trustworthy firm.
Looking at their past successes (or failures) is a good way of determining whether they will work for you. It is also worth checking whether they are regulated, as regulation of any financial services company ensures that they must be responsible with your funds.
Obviously, the most important factor for many investors when choosing an asset manager is the cost of the service. This can vary greatly between companies, and depends on which services you intend to use.
It is often the case that larger asset management companies, which manage billions or even trillions of pounds’ worth of assets, can offer cheaper prices whilst still remaining very profitable. That being said, there are still smaller firms which may be just as effective in meeting your requirements, if not more so. You may also get a more personal, in depth experience with a smaller firm. Comparing the price of different wealth managers and listing them will go a long way in helping you determine which one to choose.
Whenever choosing a wealth manager, be very thorough in your research, and do not hesitate to contact them to find out further details about their service. Once you have managed to decide which one you would like to manage your assets/investments, you should review them regularly and make sure they are fulfilling your long term investment goals.