What is asset management?

Asset management means having your money managed by someone who is specialised in it. Asset managers invest assets with the aim of achieving returns. This used to require a large initial deposit, but that is no longer necessarily the case today. In this article, we discuss what asset management is, what types there are and how it works.

Difference between individual and collective asset management

There are two different types of asset management: individual and collective. Individual asset management is bespoke. Your situation is reviewed and an investment plan is drawn up based on this. A high initial deposit (from €100,000) is often required for individual asset management.  

Collective asset management means that the assets of multiple people are managed simultaneously. Think of a pension fund, for example. Collective asset managers often use model portfolios. These are pre-set investment strategies with a low, medium, or high risk. The advantage is that you can often get started with a relatively low initial deposit. The disadvantage is that a collective asset manager does not take your specific situation, wishes, or goals into account.

Whereas the better an investment strategy suits you, the smoother your investment journey will be. A personal investment strategy looks at the ideal route to your goal. Completely tailored to who you are and what you want. That is the power of individual asset management.

What is online asset management? 

In recent years, a number of online collective asset managers have appeared on the market. This has made asset management available to a larger group of people. These online collective asset managers also use model portfolios and a low minimum deposit.

The investment strategies of these asset managers are comparable to each other, although individual investment products may differ. They diversify assets by investing in different countries, sectors, and industries. Many asset managers use a combination of investment funds and ETFs for this.

Asset management and licences

Asset managers require a licence from the Authority for the Financial Markets (AFM). They are also supervised by them. There are rules that they must adhere to before they are allowed to manage assets. These include solvency requirements, requirements for ‘good governance’, and training requirements for specific personnel. If an asset manager does not meet all the requirements? The licence may be temporarily withheld or withdrawn. Do you want to have your assets managed by an asset manager? Then first check whether this party has a valid licence from the AFM.

Is asset management right for you?

If you want to put money to work, but have little time or inclination to delve into investing, asset management can be a good choice. It is important, however, that you know exactly how much you are comfortable investing. Other aspects to consider when choosing an asset manager are:

• What investments does the asset manager use?
• What do the costs look like?
• What protection do I have on my investments?
• To what extent do I retain control over my investments?
• What is the ratio between potential return and risk?

Worry-free asset management?

Do you want to put your money to work, but do not have the time or inclination to delve into investing? Vive is an online individual asset manager. We put your money to work with a personalised, tailor-made investment plan and execute it for you. This way, you build wealth while hardly having to do anything. You can read more about what we do here, or you can simply try the app.

Please note! Investing involves risks.