The following article discusses the career path of Investment Manager. Learn about how to become one, education requirements, job duties, traits and qualities, national salary outlook as well as top national employers of Investment Managers.
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Job Duties
Investment managers hold responsibility for the money that individuals and institutions have made available for investments, aiming to build their assets. Often, this money comes from the pension plan of the organization, which showcases the tremendous responsibility of an investment manager.
It is very important for these professionals to ensure the value of investments is protected at all times and to find new methods of achieving financial growth. They must also keep their eye on any changes and how these may affect investments, making the proper changes as and where needed. They must also work closely with their clients to make sure their investment goals are met.
They buy and sell securities for their clients. They must report on this and ensure that all transactions are settled properly and according to the relevant rules and regulations. They generally work from an office, but they travel quite extensively to meet with clients in order to build professional relationships.
Other job duties of the investment manager are:
- To manage the investment portfolio of their clients, putting strategies in place to ensure the financial returns are as high as possible
- To create investment portfolios that work on the needs of the client, and to always discuss changes and status of the portfolio with the client
- To stay up to date with new investment strategies and to implement those that are deemed effective
Where We Work
According to the U.S. Bureau of Labor Statistics, there were 580,400 financial managers in 2016. The largest employers of these professionals were:
- Finance and insurance: 29%
- Professional, scientific, and technical services: 12%
- Management of companies and enterprises: 11%
- Government: 7%
- Manufacturing: 7%
How to Become
In order for people to become investment managers, they are required to hold at least a bachelor’s degree in a field such as business, economics, accounting, or finance. Most of the time, employers look for those who have a master’s degree, particularly the master in business administration (MBA). An investment manager must have an in-depth understanding of all the relevant concepts of investments, including risk and returns, markets, and investing instruments. They are usually also expected to have certain certifications to be able to complete their work properly.
Education Requirements
Typically, a bachelor’s degree is the minimum requirement for an investment manager or advisor, preferably in a field such as law, mathematics, business, accounting, economics, or finance. They should also complete courses in risk management, estate planning, taxes, and investments. It is becoming increasingly common for colleges to offer financial planning courses. Most new investment managers now hold a master’s degree, and particularly the MBA.
Once on the job, these professionals also complete further training. They start by being supervised by senior advisors. Gradually, they will work their way up to more senior positions, taking on more complex cases.
If they want to sell or buy bonds, stocks, or insurance policies, or if they want to provide more specific investment advice, they have to be licensed to do so, with each product requiring its own license. They may also have to register with the Securities and Exchange Commission (SEC) or with their state regulators. Most certifications and licenses are available through the North American Securities Administrators Association.
The Certified Financial Planner (CFP) certification is a particularly popular certification. However, they must have been employed in the field for at least three years before they can become certified. It also requires passing an examination and a commitment to adhere to a code of ethics.
Traits & Qualities
The most effective investment managers have the following traits to some degree or other:
- Excellent analytical skills
- Strong interpersonal skills
- Great mathematical skills
- Excellent sales skills
- Strong communication skills, particularly speaking skills
Minimum Education
Bachelor’s Degree
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- Most Reported
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$28,000
$242,000
The following section lists Investment Manager salaries in each state around the country. The figures are based on the total number of job postings through Indeed.com. For example, Massachusetts had the largest quoted salary of $131,241 while Minnesota had the smallest quoted salary of $35,769.
| Arizona | Kentucky | Ohio | |
| California | Massachusetts | Oregon | |
| Connecticut | Minnesota | Pennsylvania | |
| Florida | North Carolina | South Carolina | |
| Georgia | Nebraska | Texas | |
| Illinois | New Jersey | Virginia | |
| Kansas | New York | Washington |
According to Indeed.com, the following states had employers looking to hire a Investment Manager. The quoted salary figure represents the average salary from all job postings by this employer.
| Employer Name | Location | Average Salary |
|---|---|---|
| Seedrs Investment Manager | New York | $200,000 |
| Robert Walters US Investment Manager | Massachusetts | $173,241 |
| Twenty Recruitment Group Investment Manager | New York | $172,064 |
| 3coast Investment Manager | New York | $162,021 |
| Nigel Frank International Investment Manager | Connecticut | $161,350 |
| Selby Jennings Investment Manager | New York | $158,764 |
| BCG Attorney Search Investment Manager | New York | $142,302 |
| Huxley Associates Investment Manager | Massachusetts | $137,910 |
| Execu|Search Investment Manager | New York | $131,814 |
| Accounting Career Network Investment Manager | South Carolina | $122,573 |
| Green Key Resources Investment Manager | New York | $117,317 |
| Alliance Resource Group Investment Manager | California | $116,966 |
| Huxley Banking & Financial Services Investment Manager | Massachusetts | $115,741 |
| Robert Walters Investment Manager | New Jersey | $112,300 |
| Robert Half Finance & Accounting Investment Manager | Florida | $110,093 |
| Northlake Capital + Development Investment Manager | Washington | $109,548 |
| Premier Financial Search Investment Manager | California | $109,548 |
| Liberty Mutual Investment Manager | Massachusetts | $105,997 |
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|---|---|
| Chief Information Officer | $121,573 |
| Pharmacy Manager | $119,896 |
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| Data Warehouse Engineer | $111,007 |
| Business Intelligence Manager | $109,552 |
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| Technical Project Manager | $100,971 |
