An investment consultant offers investment advice to both public and private entities. These individuals are usually employed by investment banks, asset management firms, or other financial institutions. They have extensive experience in the areas of banking, finance, pensions, and investing. Most importantly, investment consultants play an important role in the strategic management of the assets of large or complex financial institutions.
Many large financial corporations hire the services of an investment consultant in the area of asset management. This is because the work of the asset management consultant requires vast experience and expertise. Typically, these consultants will be consulted by a corporate investment officer, who is a senior vice president or director, in charge of asset management within the company.
In addition to assisting corporate executives in the area of asset management, investment consultants assist government entities with similar concerns. One area of expertise that many investment consultants specialize in is international business. They often work with governmental advisory firms or agencies, which have different policies regarding investment in specific countries. In some cases, they will serve as the agency’s foreign affairs director. In this capacity, they will assist governmental leaders and members of the cabinet with regards to their investment policy, which may include determining the best policy for the company regarding investments in certain countries.
Some of the other areas in which most investment consultants work include mergers and acquisitions, which are the process by which companies combine with or acquire other businesses. In the past, financial planners and investment consultants were hired to assist with mergers and acquisitions on an individual basis. However, in the present, many financial planners work on a contract basis with large firms on a daily basis. This enables these professionals to get a better understanding of what firms need in terms of investment strategies and the best ways to implement those strategies.
Another area in which many investment consultants work is in the area of asset management. This is the area of making sure that all of a firm’s assets are invested in the right places so that there are positive returns. Some of the investments made by financial planners and asset management firms include making investments in fixed income securities, stocks, and bonds. Other areas of expertise that are commonly handled by investment consultants include estate planning, crisis investing, distressed investments, and technology investment. Many asset management firms also work closely with financial planners, which enable these professionals to help make investment decisions for clients on an everyday basis.
In the past, when people needed an expert manager, they would usually go to a stockbroker. Stockbrokers had a very limited track record and were often times not very trustworthy. Stockbrokers worked for a fee, which meant that they would have access to all of a company’s stocks and assets. Even if a stockbroker was trusted, there was no guarantee that the chosen manager would create a solid portfolio that would provide high returns. This is not the case anymore thanks to the increasing number of investment consultants that are available for clients to choose from. Investment consultants can help their clients manage their portfolio by creating a well-thought out investment strategy and ensuring that the chosen consultant has a solid track record.