Portfolio Manager as a Career
Description of the Job
A portfolio manager develops and implements investment strategies for individuals or institutional investors based on their long-term financial objectives and risk tolerance. Under the purview of financial services industry careers, portfolio management positions are available with hedge funds, pension plans, and private investment firms, or as part of an investment department of an insurance or mutual fund company.
Fast Facts
- Number of hours per week50-60 hours, must be on call during weekends
- Average starting pay$112k Nationally, $125k in the Bay Area.
- Amount of travel requiredHighly variable, depends on fund and seniority
Roles & Responsibilities
- Provide client consultation to develop investment objectives
- Give advice and guidance for investment opportunities to customers
- Create reports on investment performance and activity
- Communicate with clients about their accounts, market conditions, and economic trends
- Manage equity and bond portfolios with the aim of maximizing investment returns
- Commensurate acceptable levels of risk based on client instructions
- Work with investment research teams to identify investment opportunities
- Prospecting for new clients while maintaining strong relationships with current investors
Skills Needed
- Data Analysis: Within this role, one needs to be able to interpret data successfully in order to create reports and give successful investment advice to customers.
- Research and Analysis: As a portfolio manager, it is important to have the ability to research and analyze trends and opportunities.
- Industry-Related Knowledge: In-depth understanding of financial markets, economics, and portfolio theory is necessary to stick with the career long term.
- Customer-service: A desire and ability to communicate frequently with investor clients regarding their accounts and investment performances.
- Soft skills: Humility and willingness to learn from mistakes, ability to work independently, strong emotional control, willingness to adapt and gain a competitive edge, decisiveness, and communication skills.
Steps to Enter The Field
- People generally don’t start their careers in portfolio management, since it’s a more senior positon. Common roles before becoming a portfolio manager may include investment analyst, credit analyst, or other finance careers
- A bachelor’s degree is required for a career in portfolio management, although an MBA can help analysts move up the ranks. Some common majors for this career include Finance, Business Administration, and Economics.
- For portfolio manager interviews, it is important to be ready for specific questions regarding potential investments that will test your investing and overall financial knowledge base.
- “Most employers require portfolio managers to hold financial analyst certifications. The most prominent certification in the field and the most in-demand by employers is the Chartered Financial Analyst (CFA) designation awarded by the CFA Institute. This designation is open to any financial analyst who has a bachelor's degree and four years of acceptable work experience. It is awarded to qualifying candidates who pass a series of three exams. Many employers also name the Certified Financial Planner (CFP) designation, awarded by the CFP Board, as an optional qualification.” (source)
- Stay up-to-date on market news and trends as you may get asked questions about news/trends in interviews (source)
Landscape of the Field & Companies in the Field
- Largest players: BlackRock, The Vanguard Group, UBS Group, State Street Global Advisors, Fidelity, Allianz, JPMorgan Chase, Goldman Sachs
- There are also many regional or smaller firms that hire portfolio managers that aren’t the same size as the companies listed above.
- Portfolio managers can also work for pension funds, foundations, banks, insurance companies, and many other organizations that have portfolios that need to be managed. (source)
External Resources to Learn More & Develop Skills
- Best portfolio management courses: A list of 9 portfolio management courses for all levels (beginner, intermediate, advanced).
- Coursera’s Selection of Portfolio Management Courses: Coursera is one of the premier sites for online courses on a variety of topics including portfolio management.
- Top 80 Wealth Management Blogs & Websites in 2021: This is a list of the top 80 websites or blogs focused on wealth management.
Related Careers
- Financial Analyst, Fund Manager, Risk Manager, Hedge Fund Manager, Alternative Investment Analyst, Stockbroker, Risk Analyst, Ratings Analyst, Private Equity Associate
Informational Interviews
Stephan Maikkula
Company Name: Macquarie Group
Title: Senior Portfolio Manager
Years of Experience: 20
Biography
Stephan Maikkula is a Senior Portfolio Manager for International Small Cap strategy at Macquarie Group. He received his Bachelor's degree from Saint John's University in Management and German, then received his MBA from University of Texas at Austin. Stephan has been a Portfolio Manager for over 10 years first at UBS and now at Macquarie Group. Prior to that, he held a variety of investing roles at various firms.