What is an Investment Manager?

An "investment manager", "money manager" or "portfolio manager" is someone who manages investment portfolios. This activity is regulated by governments under Securities Legislation.

An investment manager may work for a large financial institution, such as a bank, life insurance or trust company, managing its portfolio or providing management directly to third party clients. Managing money for other people is called "investment counselling". Firms providing this service must have an "investment counsel" registration and must license their portfolio managers as investment counsel. There is an educational requirement, completion of the first year of the CFA program, and an experience requirement.

Managing portfolios without requiring client approval for actions is called "discretionary" money management. The investment manager will manage the portfolio independently, according to an established investment policy. The investment managers that most people are familiar with are mutual fund managers. They are investment managers who manage a pool of money called a "mutual fund". The mutual fund company who sponsors the fund either employs the manager or appoints an external investment manager.

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