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

Investment management firms in Washington fall into categories according to the type of asset they manage. An investment agency in Washington may dedicate itself 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 Washington investment firms:

1. Hedge funds receive contributions from members of a private partnership and investment management companies in Washington typically use those contributions invest in public securities or a financial derivative.

2. Washington 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 for Washington investment management that seeks long-term results

A highly diversified portfolio will minimize the risk, according to most investment management firms. Washington investment managers will pick stocks that have a high earnings potential and a value that is not reflected in their current prices.

I recommend: Go to Respond.com and begin the selection process by selecting retirement planning along with your zip code or city and state. Use Prudential for a variety of investment management services, including retirement planning. You can find an agent in your area by entering your zip code or city and state at Prudential’s website.

Use an investment management firm in Washington for wealthy investors

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

I recommend: Robert W. Baird & Company specializes in wealthy investors and has a branch locator you can use on its website to find the nearest financial adviser. 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 Washington investment services to help 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: Alden Capital Management in Bellevue provides clients with a range of investments and services. FS Financial Strategies is located in Edmonds and, among other things, specializes in divorce planning.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Evaluate an investment management firm according to the performance of the funds that it manages. Evaluate the performances of funds by comparing them against standard indices and peer groups over the same time period. Clients of Washington investment management firms should assess fund performance over at least 3 years to ignore the influence of short-term fluctuations in the business cycle.
• •  It is important to assess long-term investments by the assets that they represent. A Washington investment management firm 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.