Asset management combines theoretical and practical management of assets. It is the practice of leveraging total wealth over time by acquiring, maintaining, and trading investments. The practice moreover could exercise the most to the least potential of value growth. People who handle this management are called portfolio managers or financial advisors. They sometimes work independently, others commonly work for an investment bank or financial institution.
For the portfolio managers and financial advisors, their goal and target are to maximize the value of assets. They leverage value in their investment portfolio over time. Plus, they also manage an acceptable level of risk. Financial institutions including high net-woth individuals, government entities, corporations, and institutional investors like pension funds offer asset management service.
The foremost significance of the duty is owning trust from the relationship between trustee and beneficiary. They must be able to make decisions on behalf of their clients. So, good faith is highly required.