Asset management companies in Nigeria
https://fbnquest.com/understanding-asset-management-and-investment-banking-similarities-differences/
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 today!
Comments
Post a Comment