What financial management function is related to asset management?

The financial management function that is related to asset management is investment strategy. This choice is correct because investment strategy involves making decisions about how to allocate financial resources among various assets to achieve specific financial goals. It encompasses selecting the right assets to invest in, monitoring performance, and adjusting the portfolio as necessary to optimize returns while managing risk.

In the context of asset management, an effective investment strategy ensures that a firm’s assets are used efficiently and align with its overall financial objectives, such as maximizing profits or minimizing losses. This can include decisions on purchasing stocks, bonds, real estate, or other financial instruments, all of which are critical components of managing a company’s assets effectively.

Resource allocation, while also important in financial management, focuses more broadly on how resources—both financial and non-financial—are distributed within an organization. Production management is related to overseeing the production of goods and services rather than managing financial assets. Cost control pertains to monitoring and managing expenses to ensure that they do not exceed a budget, an important function but not directly tied to asset management specifically.