Investment services companies provide a range of services to help individuals and institutions manage their investment portfolios and assets. These services are tailored to meet specific investor needs and can include investment analysis and advice, portfolio management, brokerage and trading services, administrative services, and more.
The associated investment services industry has grown rapidly in recent years due to increasing investor demand. Large banks and financial institutions have investment services divisions, while smaller boutique firms specialize in specific areas. The key services provided generally fall into the categories of advisory services, investment products, trading capabilities, and account services.
Investment Advisory Services
A core offering of investment services firms is providing customized investment advice and recommendations. Advisory teams conduct research and analysis on securities, markets, asset allocation strategies, and other investments. They then make specific recommendations to clients based on their unique financial situations, risk tolerance levels, and investment objectives. Advisory services are typically customized for each client and can be broad or more narrowly focused depending on client needs.
Portfolio and Asset Management
Investment services providers can directly manage portfolios and assets on behalf of clients under discretionary or non-discretionary arrangements. This involves asset allocation, selection of securities and funds, rebalancing, tax management, and ongoing monitoring and reporting. Teams of professional portfolio managers and analysts conduct the day-to-day investing activities according to an investment policy statement.
Trading Platforms and Brokerage
A key capability offered by investment services firms is providing trading platforms and brokerage services to execute securities transactions. This gives clients access to stocks, bonds, mutual funds, ETFs, options, and other investments for their portfolios. Advanced trading technology and platforms are a major value-add, along with competitive pricing, trade support, and seamless account integration.
Account Administration and Custody
Administration of investment accounts and assets is a major activity, including account setup, transfers, documentation, fee billing, client reporting, and custody. Investment services providers offer secure custody services to safeguard client assets either directly or through partnerships with major custodian banks.
Specialized Investment Products
Larger investment services firms have the capabilities to offer more sophisticated institutional investment products such as separately managed accounts, structured products, alternatives, pooled funds, and restricted private equity deals.
In summary, investment services encompass a wide spectrum including customized advisory services, discretionary portfolio management, trading platforms and brokerage capabilities, account administration, custody, and specialized investment products. The depth and breadth of services allows clients to consolidate the management of their investment assets with an investment services provider.