Investment fund manager

Description

Investment fund managers implement and monitor the investment strategy of a fund. They manage the fund’s portfolio trading activities and supervise the financial, securities, and investment analysts in charge to perform research on the investments and then make buying and selling recommendations. They make decisions on when to buy or sell the assets included in a portfolio. This manager works in a variety of settings such as banks, companies and stockbroking companies; working closely with the investment analyst. This occupation manages strategy and does not always work with relations between shareholders or investors.

Other titles

The following job titles also refer to investment fund manager:

investments manager
portfolio administrator
portfolio managers
fund manager
portfolio administrators
fund directors
investment fund coordinator
fund director
fund managers
investment fund adviser
fixed income portfolio manager
investment managers
investment fund portfolio manager
investment fund advisor
investments fund manager

Minimum qualifications

Bachelor’s degree is generally required to work as investment fund manager. However, this requirement may differ in some countries.

ISCO skill level

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

  • the nature of the work performed in an occupation in relation to the characteristic tasks and duties
  • the level of formal education required for competent performance of the tasks and duties involved and
  • the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Investment fund manager is a Skill level 4 occupation.

Investment fund manager career path

Similar occupations

These occupations, although different, require a lot of knowledge and skills similar to investment fund manager.

investment analyst
investment manager
investor relations manager
securities analyst
dividend analyst

Long term prospects

These occupations require some skills and knowledge of investment fund manager. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of investment fund manager with a significant experience and/or extensive training.

Essential knowledge and skills

Essential knowledge

This knowledge should be acquired through learning to fulfill the role of investment fund manager.

Financial products: The different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.
Funding methods: The financial possibilities for funding projects such as the traditional ones, namely loans, venture capital, public or private grants up to alternative methods such as crowdfunding.
Financial statements: The set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statement of financial position, the statement of comprehensive income, the statement of changes in equity (SOCE), the statement of cash flows and notes.
Financial management: The field of finance that concerns the practical process analysis and tools for designating financial resources. It encompasses the structure of businesses, the investment sources, and the value increase of corporations due to managerial decision-making.
Corporate social responsibility: The handling or managing of business processes in a responsible and ethical manner considering the economic responsibility towards shareholders as equally important as the responsibility towards environmental and social stakeholders.
Securities: The financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities which is raising capital and hedging risk in financial markets.
Financial markets: The financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.
Financial analysis: The process of assessing the financial possibilities, means, and status of an organisation or individual by analysing financial statements and reports in order to make well informed business or financial decisions.
Stock market: The market in which shares of publicly held companies are issued and traded.
Modern portfolio theory: The theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing the right combination of financial products.
Investment analysis: The methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to guide decision on investment.
Actuarial science: The rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.

Essential skills and competences

These skills are necessary for the role of investment fund manager.

Make investment decisions: Determine whether to buy or sell financial products such as fonds, bonds or stocks in order to enhance profitability and to reach the best performance.
Perform stock valuation: Analyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.
Enforce financial policies: Read, understand, and enforce the abidance of the financial policies of the company in regards with all the fiscal and accounting proceedings of the organisation.
Analyse market financial trends: Monitor and forecast the tendencies of a financial market to move in a particular direction over time.
Strive for company growth: Develop strategies and plans aiming at achieving a sustained company growth, be the company self-owned or somebody else’s. Strive with actions to increase revenues and positive cash flows.
Control financial resources: Monitor and control budgets and financial resources providing capable stewardship in company management.
Develop investment portfolio: Create an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natural and technical disasters.
Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
Create a financial plan: Develop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.
Advise on financial matters: Consult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.
Manage financial risk: Predict and manage financial risks, and identify procedures to avoid or minimise their impact.
Analyse financial performance of a company: Based on accounts, records, financial statements and external information of the market, analyse the performance of the company in financial matters in order to identify improvement actions that could increase profit.
Monitor stock market: Observe and analyse the stock market and its trends on a daily basis to gather up-to-date information in order to develop investment strategies.
Plan health and safety procedures: Set up procedures for maintaining and improving health and safety in the workplace.
Trade securities: Buy or sell tradable financial products such as equity and debt securities on your own account or on behalf of a private customer, corporate customer or credit institution.
Develop financial products: Take into account the performed financial market research and the organisation’s objectives in order to develop and oversee the implementation, promotion, and lifecycle of financial products, such as insurance, mutual funds, bank accounts, stocks, and bonds.
Analyse financial risk: Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.
Follow company standards: Lead and manage according to the organisation’s code of conduct.

Optional knowledge and skills

Optional knowledge

This knowledge is sometimes, but not always, required for the role of investment fund manager. However, mastering this knowledge allows you to have more opportunities for career development.

Banking activities: The broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, foreign exchange trading, commodity trading, trading in equities, futures and options trading.
Financial forecasting: The tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.
Business valuation techniques: The processes to valuate the worth of the assets of the company and the value of the business following techniques such as asset-based approach, business comparison, and past earnings.
Debt classification: The different classifications of debt such as public and publicly guaranteed debt, private non-guaranteed credits, central bank deposits, etc.
Debt systems: The processes needed to obtain goods or services before payment and when a sum of money is owed or overdue.
Business loans: Loans which are intended for business purposes and which can either be secured or unsecured depending on whether a collatoral is involved. The different types of business loans such as bank loans, mezzanine finance, asset-based finance, and invoice finance.
Credit control processes: The various techniques and procedures applied to ensure that credit is given to the suitable customers and that they pay on time.
 

Optional skills and competences

These skills and competences are sometimes, but not always, required for the role of investment fund manager. However, mastering these skills and competences allows you to have more opportunities for career development.

Analyse loans: Examine and analyse the loans provided to organisations and individuals through different forms of credit such as overdraft protection, export packing credit, term loan, and purchase of commercial bills.
Prepare credit reports: Prepare reports which outline an organisation’s likelihood of being able to repay debts and do so in a timely manner, meeting all the legal requirements linked to the agreement.
Interpret financial statements: Read, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this information in the development of the department’s plans.
Communicate with banking professionals: Communicate with professionals in the field of banking in order to obtain information on a specific financial case or project for personal or business purposes, or on behalf of a client.
Examine credit ratings: Investigate and look for information on the creditworthiness of companies and corporations, provided by credit rating agencies in order to determine the likelihood of default by the debtor.
Obtain financial information: Gather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.
Consult information sources: Consult relevant information sources to find inspiration, to educate yourself on certain topics and to acquire background information.
Manage administrative systems: Ensure administrative systems, processes and databases are efficient and well managed and give the sound basis to work together with the administrative officer/staff/professional.
Liaise with shareholders: Communicate and serve as communication point with shareholders in order to provide an overview on their investments, returns, and long-term plans of the company to increase profitability.
Negotiate on asset value: Negotiate with asset owners or parties involved in handling the asset on the monetary value of the asset for selling, insurance, usage as collatoral, or other purposes, in order to secure the most financially beneficial agreement for the client.
Liaise with board members: Report to the management, boards of directors and committees of an organisation.
Negotiate loan agreements: Negotiate with banking professionals or other parties functioning as lenders in order to negotiate the interest rates and other aspects of the loan contract in order to obtain the most beneficial agreement for the borrower.
Liaise with managers: Liaise with managers of other departments ensuring effective service and communication, i.e. sales, planning, purchasing, trading, distribution and technical.

ISCO group and title

2412 – Financial and investment advisers

 

 


 

 

References
  1. Investment fund manager – ESCO
Last updated on August 8, 2022