A South Dakota investment firm controls equities, income securities, real estate and derivative products of these assets. Investment firms in South Dakota represent the customers, or “buy side,” of the investments business and the sellers, or “sell side,” are the investment bankers.

South Dakota investment management companies classify themselves by the specific type of asset they manage. Investment management firms in South Dakota may dedicate themselves to a specific client base while others serve all client types, including businesses that have assets to invest.

It is important to distinguish between the three basic investment types when evaluating South Dakota investment management services:

1. Mutual funds use the contributions of individual investors to form a single fund. A South Dakota investment management firm typically uses mutual funds for investors that do not have a high net worth.

2. Investment management in South Dakota forms hedge funds with contributions from members of a private partnership and typically invests in public securities or a financial derivative of a public security.

3. The source of institutional funds is pensions, endowments and foundations for non-profit organizations. Investment management firms in South Dakota invest these types of funds more conservatively than mutual funds.

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

Select a South Dakota investment firm that seeks long-term results

A high degree of diversification to minimize risk is the most common strategy for these types of investment management firms. South Dakota investment managers look for stocks that have a value that is not reflected in their current prices combined with a high earnings potential.

I recommend: Workman Securities deals in a range of investment services, including retirement planning and allows you to locate representatives by state on its website. Respond.com uses a disciplined management approach to provide superior results over a complete market cycle for its clients.

Find a South Dakota investment management firm for wealthy investors

A unique investment management plan is frequently beneficial for affluent clients. The financial advisers for these types of clients should work closely with the investment management firm to increase the client's wealth over the long-term.

I recommend: The National Association of Active Investment Managers is a non-profit association of registered investment advisers. You can find the nearest registered adviser by providing your city and state on its website. Robert W. Baird & Company specializes in wealthy investors and has a branch locator you can use to find the nearest financial adviser.

Select South Dakota investment services that will strengthen your community

Firms based in a specific area will manage equities and bonds investments in local business more efficiently than other investment managers. 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: BTC Wealth Management Group specializes in customizing portfolios to meet the unique needs of primarily affluent clients. The Great Western Investment Management Group, with many locations throughout South Dakota, offers investment management services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Fund performance is the gold standard by which an investment management firm is measured. Financial analysts use standard indices and peer groups to compare the performance of different funds over the same time period. South Dakota investment services should assess fund performance over a long period, usually at least 3 years. This time frame will minimize the effect of short-term fluctuations in the business cycle.