We are experiencing a high number of calls at the moment. So that we can support those in the most vulnerable situations, please only call if it is urgent. Remember, you can do most of your banking tasks yourself online, either using our app or through Internet Banking. 

    •  

    What is asset management?

    Asset management is the day-to-day running of a wealth portfolio. It is usually headed by an investment manager.

    The management of assets involves building a portfolio of investments. This includes assessing risks, finding opportunities, and developing an overarching strategy for reaching a set of financial objectives.

    How does asset management work?

     

    Understanding your financial goals

    An asset manager will work closely with you to understand your financial goals. This could be preparing for retirement through long-term investments or growing your assets through a diverse portfolio.

    Creating a unique investment plan

    Your asset manager will then create a strategy based on your personal preferences, comfortable risk level and unique circumstances. Using this plan, they can start making investments or using financial products on your behalf.

    Maintaining your investments and managing products

    Once you have a portfolio of investments, your asset manager will maintain your investments or manage any financial products which are part of your plan. This includes selling funds when the timing is right and purchasing more assets based on market research.

    What do asset management companies do?

    Asset management firms manage funds for individuals and companies. They make well-timed investment decisions on behalf of their clients to grow their finances and portfolio. Working with a group of several investors, asset management firms are able to diversify their clients' portfolios.

    An asset manager’s main role is investing wealth. To maximise your potential returns, they monitor and assess the market to look for threats and opportunities and adjust your portfolio accordingly.

    Utilising these areas of expertise, an asset management company will manage your portfolio daily to minimise your risks and seize new opportunities. 

    Advantages of asset management

    • An asset management company will have a great deal of resources and services at their fingertips. This means you’ll have more investment options than trying to do this for yourself.
    • Your asset manager will aim to ensure your investments meet your financial objectives with the level of risk you have allowed them to take. Annual reviews are there to assess whether the strategy still meets your needs. If your needs have changed, you will be switched you to a new strategy.

    Disadvantages of asset management

    • You may be able to reach your investment or savings goals without any outside help, using traditional savings products, like ISAs.
    • Many asset managers require a minimum level of investment, which could be more than you’re looking to invest.

    Want to learn more about investing?

    Visit our investment management page to find out how expert advice could help you.

    Find out more

    What is asset management? | Lloyds Bank

    Wealth

    Wealth Management

    Investing

    Pension Planning

    Managing Retirement

    Inheritance

    Protection

    Pricing

    FAQs

    More reading

    Pricing

    Investment bonds explained

    Important legal information

    Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.

    Schroders Personal Wealth is a trading name of Scottish Widows Schroder Personal Wealth Limited.