Investment management is the professional management of financial assets and other investments belonging to an investor. An investment manager will use their knowledge, skills and experience to invest money on behalf of their client, within a scope that the client has defined and in line with the client’s appetite for risk. Other areas of involvement can include banking, budgeting and tax services. Clients range from individuals investing their personal wealth to large institutional investors.
Before making investment decisions, investment managers will ascertain the client’s investment objectives. They will work with them to develop short- and long-term investment strategies that reflect their client’s appetite for risk. Investment managers must possess extensive knowledge about available investment vehicles and will conduct extensive research, analyse securities and bonds, review financial data and sometimes liaise directly with investment analysts, to determine the best strategy for investments.
The management of client portfolios may also include day-to-day buying and selling of securities, portfolio monitoring, performance measurement, transaction settlement, and regulatory and client reporting.
Investment management is largely a client-facing role, and investment managers spend the majority of their time liaising with clients and attending meetings. Typical employers of investment fund managers include investment banks, investment management companies, stockbrokers, banks and insurance companies.
