Surplus Management

Surplus management

Related: Asset management

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Surplus Management

The act or practice of an investment advisory firm making investment decisions on behalf of a client. Surplus management often opens up more potential investment vehicles up to the client. Another advantage is that, theoretically, surplus managers have more knowledge and experience in making appropriate investment decisions than the client. Surplus management is usually limited to institutional investors and high net-worth individuals, as it is usually expensive. More commonly, it is called asset management.