Asset Management and Investment Banking
Asset management and investment banking are two very prominent financial services sectors in Nigeria currently. However, not many understand the specifics that differentiate the two services as well as the distinct clientele that each serves. In this article, we clarify the unique roles of asset management and investment banking, and the type of financial service each offers.
Asset Management and Investment Banking
Defined
To
understand the distinction between asset management and investment banking,
let’s start with their definitions:
What is Asset Management?
Asset
management is the professional handling of money, assets and investments on
behalf of a client to ensure maximum returns. This process involves buying,
holding, and selling various financial assets including stocks, bonds,
commodities, and alternative instruments and requires executing a proven
investment strategy to help a client achieve their investment goal.
What is Investment Banking?
Investment
banking is a financial service that involves providing financial advisory and
expertise to investors, corporations and governments towards organising and
executing sophisticated financial transactions for business capital-raising
such as mergers and acquisitions, initial public offerings, bond issuance, etc.
Asset Management and Investment Banking
Compared
Although
asset management and investment banking are both services that help clients
manage their capital, asset management focuses on handling an investor’s
portfolio through buying or selling of equity, bonds and other securities for
optimum returns. Investment banking on the other hand involves assisting
businesses raise money through selling equity, issuance of bonds, and
organising private acquisitions or mergers. Here is a breakdown of the
differences between asset management and investment banking.
1. Differences Between Asset Management and
Investment Banking Services
ASSET
MANAGEMENT |
INVESTMENT
MANAGEMENT |
Involves
buying and management of securities and other assets to maximise gains for a
client. |
Involves
selling of securities and executing private acquisition arrangements to raise
capital for a business. |
2. Differences Between Asset Management and
Investment Banking Clientele
ASSET
MANAGEMENT |
INVESTMENT
MANAGEMENT |
Retail
investors, institutional investors, government organizations, and
high-net-worth individuals. |
Corporations,
government, and financial institutions. |
3. Differences Between Asset Management and
Investment Banking Objectives
ASSET
MANAGEMENT |
INVESTMENT
MANAGEMENT |
To
maximise investment returns and grow clients’ income. |
To
raise money for business growth and expansion. |
FBNQuest- Leading Provider of Asset
Management and Investment Banking Services in Nigeria
FBNQuest
is a leading provider of asset management services and investment banking
solutions in Nigeria.
Our
investment banking solutions cut across every aspect of corporate financing
including long-term treasury management, as well as equity and debt financing
and mergers. Equally, our reputable asset management services provide you with
a wide range of financial and investment management services, to help you
maximise your earnings and reach your financial goals.
With
over 20 years in the business, we boast of a diverse clientele including
federal and state governments, and larger corporations across all sectors of
the economy.
Want
to learn more about our asset management and investment banking solutions?
Visit fbnquest.com/our-solutions/ today!
Contact Us :
Call us
at 01-2801340-4
Email
Us at ccu@fbnquestmb.com
Address :
16 Keffi Street, Off Awolowo Road, S.W. Ikoyi, Lagos, Nigeria
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