Investment Portfolio Management

Investment management involves the professional management of various financial securities and assets belonging to an investor for the purpose of achieving financial objectives. An investment manager is an individual who manages investor finances and focuses on yielding future benefits for the investor. Investment managers manage investment portfolios for all of their Clients, and operate under the government’s extremely strict and rigorous financial securities legislation.

Investment managers will usually manage multiple investment portfolios for many different Clients and companies, and will also provide direct investment management services to their clients. Since investment managers are required to manage the money and assets on behalf of their investors, they must also provide a high-level of ‘investment counselling’. Investment management companies providing this level of service to their clients, are required to follow regulatory guidelines and license their investment managers as ‘investment counsellors’ or ‘investment counsels’. Investment counsellors liaise directly with clients over their investment strategy, and look together at their preferred level of risk, what types of investment they’re looking for and consider the overall best strategy for asset allocation and investment fund management. 

An investment manager, involved in counselling on a face-to-face or remote online basis directly with Clients, is expected to have completed at least the first year of the accredited CFA programme they must also hold relevant professional experience within the UK investment industry. Investment managers are also known as ‘fund managers’, and help their clients make investment decisions. Your fund manager is going to be in overall charge of your portfolio performance and will spend a lot of time at the beginning of your relationship looking at your risk tolerance levels to ensure your fund is managed in the way that you are happiest with.

Whether they’re referred to as ‘fund’ or ‘investment managers’, both job titles can be used interchangeably to refer to both an individual who helps direct investment management decisions to and for Clients, and also to institutions providing financial services.

Setting investment objectives: 

Investment goals will differ depending on the person investing, their personal risk profile, their ethical preferences, and the long-term ambition or purpose behind the investment. Investments can be made by financial institutions, such as banks, pension funds, insurance companies, etc as well as obviously by individuals looking to invest their private savings. Investments made by private investors are usually focused around generating high returns on investments. Investment managers help set investment objectives depending on investor decisions.

Formulating an investment plan: 

Following the setting of the major objectives for investment, investment managers help formulate a plan for investment based on the additional information about risk, ethics, purpose and future life plans gathered during the initial client meetings. An investment manager will draw up investment plans based on factors such as risk profile, financial capacity of investors, market factors, economic conditions, and ever changing government regulations.

Establishing the portfolio strategy: 

An investment manager will weigh up the objectives and constraints and classify asset classes accordingly. Asset classes include financial securities (fixed income, foreign), debts, equities, currencies and real estate (commercial and residential). An investment manager is responsible for the selection of the assets for investment from the main asset classes, again paying particular attention to the clients personal and need-based profile. 

Since investment management is an ongoing process, and will vary according not just to client needs but also to economic conditions, then all investment managers are expected to consistently evaluate and improve their investment portfolios. Much of the continued professional development and training investment and fund managers undergo is designed to reflect adapting to changing trends and the changing economic environment. It’s worthwhile looking for a company that can offer a high level of client reviews, as well as proving their qualifications and regulatory adherence.

An experienced investment manager will help their clients with the following:

  • Formulate the best investment strategy, this includes initial asset and stock investment selection

  • Monitor these investments on an ongoing basis and make changes and adjustments where necessary

  • Help achieve short, medium & long term goals simultaneously, whilst being aware of and sympathetic to any changing client needs that may arise 

  • Provide advice on other investment areas or opportunities as they arise

  • Handle investor decisions and investments with the utmost discretion, even before the advent of GDPR client confidentiality was critical and key

Asset (Portfolio) Management and Asset Investment Managers: 

The term ‘asset management’ refers to the management of collective investments made in multiple investment options on behalf of groups of investors, for example mutual funds. An asset investment manager is required to make decisions that will general for the client the maximum financial returns and gains possible, within the timeframe and conditions laid down by the client. The decisions taken by any good, qualified, asset and/or portfolio investment manager should always be based on current market information, sound future market and economic projections, as well as comprehensively researched information, financial profitability, predetermined investment targets and the availability of resources from the client.

Money Management and Money Investment Managers:

Money investment managers may manage a client’s investment portfolio without his or her direct daily involvement or approval. This is a particular form of investment management  known as ‘discretionary’ money management, and is highly regulated and competitive. The money investment manager always manages the investment portfolio independently and is entirely responsible for the fund and all its transactions. This means the money manager will set goals, build budgets, cut down on unnecessary expenses, save money and make all investments and investment decisions based on the investor’s risk constraints, ethical guidelines and financial investment guidelines. Money investment managers are focused only and solely on achieving profits for the investor’s current and future wealth.

Wealth (Portfolio) Management and Wealth Investment Managers: 

Private investors, typically wealthy individuals - also known as ‘high net worth’ individuals, will invest money in large sums in the capital market. A wealth or portfolio investment manager manages all of the investment accounts on behalf of these high net worth individuals.

Start planning your future. Speak to us today.

Contact Us

Seventy Financial Planning
The Apple Store, Haggs Farm,
Haggs Road, Follifoot, Harrogate,
HG3 1EQ

01423 611004

[email protected]

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