An investment manager's function is to manage a company's or an institution's investments. Investment decisions involve such things as what to buy in the way of securities, property for investment, or other items; or what and when to sell existing holdings for maximum return on investment.
Also called financial analysts and securities analysts, these investment specialists work as officers in banks, insurance companies, brokerage firms, pension plan investment firms, and mutual funds. They may function as trustees for institutions or individuals with large holdings or for colleges that have endowment funds to manage. Some use their expertise as financial journalists, analyzing the market for financial publications, newspapers, and magazines.
Places of Employment and Working Conditions
Investment managers work in all parts of the country but are concentrated in Boston, Chicago, New York City, and San Francisco. The work is very time consuming since investment specialists must read constantly—newspapers, annual reports, trade publications—to keep abreast of developments and changes in the market.
Investment managers often work more than 40 hours a week. One-third of full-time analysts usually work between 50 and 70 hours a week.
Qualifications, Education, and Training
Facility in mathematics; ability to digest, analyze, and interpret large amounts of material; an inquiring mind; and good communication skills are important in this field.
A college degree in economics, business administration, finance, or marketing is preferred in the investment field. Engineering or law, especially if combined with graduate work in business administration, can also provide an excellent background. Training in mathematics, statistics, and computers is becoming increasingly important.
The mark of professionalism in this field is the chartered financial analyst (CFA) degree, which is comparable to the certified public accountant (CPA) for an accountant. To earn it, the applicant must fulfill the membership requirements of one of the financial analyst societies and complete three examination programs. Five or more years of experience as a financial analyst are necessary before the third examination can be taken.
Potential and Advancement
The Bureau of Labor Statistics estimates that the demand for investment managers will grow by about 7% between 2014 and 2024, providing decent opportunities for employees in this sector.
Since this is already a high-level position in most organizations, further advancement for an investment manager would usually take the form of moving to a larger institution or organization if he or she has achieved a reputation for accurate analysis and wise management of investments.
Income
According to the Bureau of Labor Statistics, the median annual wage of investment managers was $117,990 in 2015.
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