Asset Management Companies

Asset Management Companies are companies that manage pooled funds of investors in accordance with their announced goals. Most mutual funds/money market funds etc are operated by asset management companies who make money off fees.

Peter Lynch notes that publicly traded asset management companies have been better investments than the funds they manage.

In special cases, an asset management company may manage other types of assets. In the 2004 banking system reform in China, the bad debt of banks were stripped and put into 4 stateowned asset management companies, thereby cleaning up the banks’ balance sheet.