Investment Banks, Hedge Funds, and Private Equity, 2nd Edition

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Asset Management, Wealth Management, and Research

Asset Management

Asset management refers to the professional management of investment funds for individuals, families, and institutions. Investments include stocks, bonds, convertibles, alternative assets (such as hedge funds, private equity funds, and real estate), commodities, indexes of each of these asset classes, and money market investments. Asset managers specialize in different asset classes, and management fees are paid based on the asset class. For alternative assets, additional fees are paid based on investment performance as well. Fees types can be broken down into four major categories, based on asset class:

1. Alternative assets: Management fees can range from 1 to 2% of assets under ...