I need help on a research project. Where do they work (big companies? and if so what type? or do they work by themselves?) and are there alot of them or just a few. I am talking about the big type money managers that manage big pension funds or endowments.
Thanks Money managers manage stocks, bonds, and other financial assets for individuals, businesses, and governments. While all money managers have their own unique styles and techniques, the key to being successful in money management is to have discipline, be broad-minded, and be willing to cut losses when necessary. Some money managers buy and hold fixed income securities including mortgaged-backed securities, corporate bonds, municipal bonds, agency securities, and asset-backed securities. Others money managers focus on equities, including small stocks, large caps, and emerging market stocks. Yet others work as financial planners, helping individuals work to develop a secure financial future.
It is usually rather difficult to get started in money management. It is particularly hard to find positions at the best money management firms or at top mutual funds. Good places to begin a money management career are in bank trust departments, state and local pension funds, and insurance companies. Many finance professionals cross over into money management after obtaining years of experience on the sell side of the business in investment banks. Perhaps one of the best ways to break in is on the marketing side as a broker.
Individuals with the social skills and intelligence required to successfully work in market money management services will have many opportunities available to them. In terms of education, be sure to study financial markets, investments, and portfolio theory. Professionally, strive to obtain the CFA certification.
Personality Traits and Skill Requirements. The money management industry is booming and offers a variety of career options that may differ substantially depending upon whether they are marketing- or analysis-focused. Nevertheless, typical skill requirements include the following:
People Skills: Medium to High
Sales Skills: Medium to High
Communications Skills: Medium to High
Computer Skills: High
Analytical Skills: High
Ability to Synthesize: High
Creative Ability: Medium
Initiative: Medium to High
Work Hours: 55-60/week
Key Career Areas
Portfolio Manager. Portfolio managers typically work for money management firms or pension funds to select and manage investments that meet the goals of a group of investors. Many portfolio managers now work in specialized commodity funds or hedge funds. Portfolio managers have different styles, ranging from a bargain-hunting approach (value investing) to a growth stock selection approach. A career in portfolio management requires patience, discipline, and a strong understanding of financial markets and companies.
Portfolio Management Sales. Portfolio management sales positions require individuals who are outgoing and knowledgeable about company products. Portfolio management sales executives spend a considerable amount of time putting together presentations for clients and working with portfolio managers. Money management firms require confident, seasoned professionals for this position. Charismatic individuals who command respect and trust when making recommendations about ways to invest large sums of money are most successful and earn the highest salaries in the portfolio management sales area.
Investment Advisory Services. Investment advisory services provide investment advice, performance evaluation, and quantitative analysis to the money management sector. Many investment advisory services provide customized reports to pension funds and mutual funds. A career in investment advisory services requires strong quantitative and analytical skills.
Mutual Fund Analysts. Mutual funds and pension funds require analysts to perform preliminary analytical work before making investment decisions. Issues such as safety and suitability must be fully considered. Mutual fund analysts must be analytical and possess a good understanding of computers. Most mutual fund analysts truly enjoy their jobs because of the variety and investigative nature of the work.
Hedge Fund Trader/Managers. Hedge fund traders and managers manage private investment portfolios. Hedge fund managers typically invest in stocks, bonds, currencies and derivatives--often using significant amounts of leverage.
Financial Planner. Financial planners help individuals plan their financial futures. Comprehensive financial planners perform investment planning, tax planning, insurance planning, retirement planning, and estate planning. Successful financial planners have good listening skills, a knowledge of different types of investments, a knowledge of tax law, and the ability to develop their own business. Financial planners can work independently, or for large financial planning firms. Increasingly, a career in the financial planning field requires a Certified Financial Planner (CFP) designation.
Salaries. Salaries in money management are likely to be mainly a result of performance. Starting analyst positions for undergraduates at leading mutual funds, pension funds and bank trust departments have salaries in the neighborhood of $30,000 to $50,000.
In the world of equity portfolio managers, there is a high dispersion of pay. A job at a state pension fund or a bank trust department will pay in the $60,000 to $150,000 range. Once you are out into a private fund or a money management outfit, salaries can rise quickly if you have a record of strong performance. It is not uncommon for some equity managers to earn from $500,000 to over a million.
Salaries can also be lucrative for managing fixed income securities. The availability of managers in some areas such as for mortgage-backed and asset-backed securities is scarce, so salaries can be as much as $700,000 or more.
Many money management organizations are relatively small (with perhaps five principals and twenty others). In these organizations, the principals/owners typically do extremely well, earning as much as $10 million or more.
The following describe average salaries for money managers from the 2001 Robert Half Salary Guide.
Portfolio Administrator: $44-63K
Trade Settlement/Reconciliation Specialist: $37-57K
Sales/Trader Assistant: $37-57K
Margin/Dividend Clerk: $32-52K
Shareholder/Client Service Representative: $27-37K
Suggested Coursework. Careers in money management involve the management of funds for individuals and institutions. Courses relevant to a major in money management would include the following
Strongly recommended
Corporate Finance
Advanced Corporate Finance
Investment Analysis and Portfolio Management
Taxation and Management Decisions
Market Microstructure and Trading
Investment Banking & Financial Intermediation
Money and Capital Markets
Derivatives
Advanced Derivatives
Recommended
Corporate Restructuring
Financial Statement Analysis
Corporate Financial Reporting
Statistical Forecasting
International Investments
International Corporate Finance
Other Suggested Courses
Advanced Marketing Strategy
Useful Professional Certifications
Certified Investment Management Consultant (CIMA)
Certified Market Technician (CMT)
Chartered Financial Analyst (CFA)
Chartered Financial Consultant (ChFC)
Certified Financial Planner (CFP)
NASD Exams (Series 7, 63, etc...)
Internet Resources
The WetFeet Insider's Guide to the Mutual Fund Industry
Bloomberg Careers
FinanceProfessional.Com
Jobsinthemoney.com
Association for Investment Management and Research
Investment Company Institute
Money Management Top Firms
Investment Banking Top Firms
Job Listings
New York Society of Security Analysts, Inc.
The Bond Market Association
Securities Industry Association
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