Investment management in Maine is the professional management of assets such as equities, income securities, real estate and derivative products. Maine investment firms are customers who represent the "buy side" of investments while investment bankers who represent the "sell side."

Maine investment services fall into categories according to the type of asset managed by the investment management firms. Maine companies may dedicate themselves to a specific client base while others serve all client types, including businesses that have assets to invest.

It is critical that you understand the three basic types of investments when evaluating Maine investment firms:

1. Hedge funds receive contributions from members of a private partnership and financial firms in Maine typically use them to invest in public securities or a financial derivative. They may use a variety of strategies for making a profit.

2. Maine investment management firms use mutual funds for individual investors that typically do not have a high net worth. The firm combines the individual contributions to create a single investment.

3. Pensions, endowments and foundations for non-profit organizations form the basis for institutional funds. They use a more conservative investment strategy than mutual funds.

Action Steps
The best contacts and resources to help you get it done

Select a company to perform investment management in Maine for long-term results

A highly diversified portfolio will minimize the risk associated with the various offerings of investment management firms. Maine investment managers will pick stocks that have a high earnings potential and a value that is not reflected in their current prices.

I recommend: Complete the form at Alliance Bernstein and select retirement planning as the primary topic of interest to have the nearest agent contact you. The Service Employees International Union is the fastest growing union in North America and promotes several investment firms in Maine that specialize in retirement planning.

Seek financial firms in Maine for wealthy investors

Affluent clients tend to benefit the most from a unique investment plan based on diversified holdings through investment management firms in Maine. Investment managers will partner with clients and their financial advisers to increase each client's wealth over the long-term.

I recommend: Smith Barney accepts venture capital from wealthy investors and allows you to specify your state and the amount of money you have to invest on its website. Wealth management is one of the core businesses of Wachovia. You can locate its nearest financial center by entering your city and state or zip code on its website.

Select local investment management firms in Maine to strengthen your community

Local investment firms are best able to design a portfolio that contains equities and bonds that support local businesses. That local knowledge will put your money to good use, not only increasing your own worth, but helping other local business owners expand and prosper as well.

I recommend: The Kennebec Savings Bank provides conservative investment management for you, your heirs and beneficiaries. F.L. Putnam in Portland, ME, requires a minimum investment of $500,000 and provides growth at a reasonable price.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Evaluate a Maine investment management firm according to the performance of the funds that it manages. Evaluate the performance of funds by comparing them against standard indices and peer groups over the same time period. Clients of Maine investment services should assess fund performance over at least 3 years to ignore the influence of short-term fluctuations and the business cycle.
• •  It is important to assess long-term investments by the assets that they represent. Maine financial firms will usually advise that equities generate higher returns than bonds in most countries, and bonds are more profitable than cash. This is because equities have a higher risk than bonds, which are more volatile than cash.