As the CEO and chairman of Barings, Thomas Finke is responsible for directing investments totaling $300 billion. Thomas (Tom) Finke oversees company operations in the United States, Europe, Australia, and Southeast Asia.

1. THE BASICS OF ASSET
MANAGEMENT
COMPANIES
Thomas Finke

2. INTRODUCTION
As the CEO and chairman of Barings, Thomas Finke is
responsible for directing investments totaling $300
billion. Thomas (Tom) Finke oversees company
operations in the United States, Europe, Australia, and
Southeast Asia.
If you’re new to the investment field, you may be
wondering how an asset management company (AMC)
works. AMCs are considered "buy-side" firms, which
means they manage their clients’ funds by purchasing
securities and other investment vehicles.

3. ASSET MANAGEMENT
Buy-side firms typically base their buying decisions on
research and analytics performed in-house, though they
also consider public information released by sell-side
firms. AMCs generally own a stake of the total assets
under management.
As an example, if a client invests $4 million, and the
AMC assesses a 2-percent commission fee, the firm
owns $80,000 of that investment. When the value of the
total investment increases, the value of the firm’s 2-
percent stake increases as well. Some AMCs may employ
set fee structures rather than, or in addition to,
commission-based compensation.