finance question

**Gonzo** · 30 January 2007, 18:58

Originally posted by ratewhore

Whats the difference between an investment bank and an asset management company?

My understanding is that an Investment Bank will (among the many other things it might do) trade and invest on its own account to make a profit.

Whereas an asset management company invests other people's money and makes its money by charging a percentage of the amount that it looks after.

Either way they do similar things although the investment bank can do more interesting things when it is its own money being invested. There are whole heaps of rules on what the asset management company can do with other people's money.

I am sure other people can come up with more insightful descriptions though.

**Zippy** · 30 January 2007, 19:02

Originally posted by ratewhore

Whats the difference between an investment bank and an asset management company?

Ummm .... about £250 a day??

**Buffoon** · 30 January 2007, 19:44

You will hear the terms buy side and sell side. An Asset Manager is on the buy side. i.e. it acquires (and disposes of ) assets for fund such as your pension or savings plan. An Investment bank is on the sell side i.e. it is involved in the transfer of asset or bringing them to market. It goes a lot deeper than that though.

finance question