In the capital market, of course, there is a manager who is tasked with managing everything in the market. This task is a task carried out by an investment manager or commonly called MI. This time, we will discuss the investment manager along with other duties and related matters. An investment manager is a party that manages a portfolio of securities for customers or manages a collective investment portfolio for a group of customers, except for insurance companies, pension funds, and banks that carry out their own business activities based on applicable laws and regulations. For more information about this investment manager, you can read more details in the article below. Don't forget to follow GIC Instagram account to find out information about GIC and Trading!

What is an Investment Manager

An investment manager is the process of creating and maintaining an investment portfolio. Investment managers include advising on investment strategies, buying and selling investments (such as stocks and bonds), managing portfolio asset allocation and considering tax implications. Investment managers can be done independently or with the help of an advisor.

Investment manager, portfolio management, and asset management are all terms that refer to services that provide oversight over a client's investments. An investment manager is not only about managing specific assets in a client's portfolio, but also ensuring that the portfolio remains aligned with the client's goals, risk tolerance, and financial priorities.

Investment managers, also known as fund managers and asset managers, seek to make their clients' money grow so that they can achieve their goals and aspirations, to help offer a more comfortable future. They are the engine room of investment funds, pension funds and various other savings products. This includes allowing investors who don't have a lot of money to pool it with others and spread it out more widely than they could on their own, in a cost-effective way. This is often done through investment funds. With the help of an investment manager, it is possible to invest in a variety of different asset classes, such as stocks, bonds, property, small startups, and infrastructure. An investment advisor or broker can help investors make informed choices regarding which assets or funds to invest in. The money is invested according to the amount of risk that the client is willing to take. (The greater the risk you take, the more rewards you can earn, but there is also a greater chance of losing money. Generally the longer you are willing to invest, the more likely risk you can take). This is usually done by clients who invest their money in funds that best suit their attitude towards risk and the asset classes that interest them. Some clients want certain factors to be taken into account, such as environmental and social issues. Fees are usually based on a percentage of the amount invested – which means the interests of the investment manager and the client are aligned – both benefit as the money grows. Investment managers adhere to various rules about how to behave and how to communicate with clients – they must always act in the best interests of the client. One of the main differences between an investment manager and a bank is that the money remains the client's, and is kept in custody by a company that is independent of the investment manager. If something happens to the manager, the money remains safe and separate from the manager. This should not be confused with investment risk, the possibility that investments in the portfolio may fall in value.

Duties of an Investment Manager

  • The investment manager's job description revolves around managing the wealth and investments of others to help grow their money. The range of clients is from individuals, businesses, government organizations, financial bodies, insurance companies, etc.
  • Investment managers usually make agreements with investors before conducting investment activities on behalf of clients.
  • The main role of an investment manager will involve ensuring the safety of investors' funds, getting maximum returns, and providing them with timely advice to keep up with market trends.
  • The investment manager will review various investment techniques, implementing the best strategies to serve the client. Usually this will consist of building an investment package or portfolio based on the client's financial goals and risk tolerance. The investment manager will make investments for clients in securities such as
    • Stock
    • Bond
    • and Real Estate
  • The investment manager will also include monitoring daily fluctuations in the value of assets, determining when buying and selling is necessary. They will make recommendations to clients based on what they think is best for their financial success.
  • The important roles that investment managers play include analyzing securities and making recommendations. In the process, they focus on making investments on behalf of clients in assets that they believe are the best investments according to their financial goals.
  • The role of an investment manager also requires the supervision of a team of financial analysts. Other responsibilities can be similar to those of a financial planner. In this case, the investment manager will provide advice and answer questions on various financial topics, including:
    • Tax
    • Retirement
    • Cash flow
    • Risk management
    • Housing Planning

How to Become an Investment Manager

Becoming an investment manager requires education, hard work, and perseverance. Most brokerage firms or investment houses will look for applicants to have a Bachelor's degree in Economics, Finance, Financial Planning, Business, or Mathematics. For some positions, an advanced degree such as an MBA is required. There is also a requirement to have a license. In the United States, the most common forms of licensing are Series 7 and Series 63 or 66 certifications. The Series 7 exam is required to become a registered representative of any broker-dealer firm, or investment firm, in the United States. This is a six-hour test, which will typically be sponsored by a company, and covers all types of investments and regulations—stocks, bonds, mutual funds, individual retirement accounts, annuities, stock options, ethics, documentation, and influencing transactions. After passing the Series 7 exam, the applicant must also take the Series 63 or Series 66 Exam, depending on the country of residence. The Series 63 exam is much shorter, and includes knowledge and familiarity with state regulations.

Sharia Investment Manager

What is meant by an investment manager of a sharia mutual fund is the party in charge of determining how the investment performance is and providing certainty on the legality and safety of a mutual fund product. He is also tasked with managing public funds in accordance with sharia principles. Sharia mutual funds are a forum to collect public funds managed by MI, to then be invested in various securities instruments such as stocks, types of bonds, and money market instruments using Islamic sharia provisions and principles.

List of Best Investment Managers

The following are the top Investment Manager companies. The rating is based on the amount of funds (assets under management or AUM) under its control, based on the most recently reported balance sheet as of February 2022.

You may recognize some of these Investment Manager companies, as they are some of the largest financial institutions in the world.

Some companies may have much higher reported assets under surveillance, which will include money that is still managed by the client himself.

1. BlackRock

AUM: $9,464 trillion

BlackRock is not only the largest asset manager in the world, but also one of the largest financial institutions in the world. The company was founded in 1988 and went public in 1999

The company has been influential in advancing the growth of exchange-traded funds (ETFs) through its iShares product. iShares comprised more than a quarter of BlackRock's assets under management in 2021.

2. Vanguard Group

AUM: $8,4 trillion

Vanguard is known for its passive investment strategy. This means that money is placed in mutual funds that are designed to reflect the activity of a particular index or the broader stock market.

Vanguard boasts a low expense ratio for most of its funds. Along with asset management, Vanguard offers brokerage services, financial planning, annuities, and other services.

3. UBS Group

AUM: $4,432 trillion

UBS Group has four divisions operating worldwide. The Swiss-based company describes itself as "the only truly global wealth manager."

UBS offers wealth management and asset management services.

4. Loyalty

AUM: $4,23 trillion

Fidelity is an asset manager and discount broker with over 30 million customers in the third quarter of 2021. 6 Offers an online platform for individual investors to buy and sell securities.

Fidelity also manages the entire portfolio on behalf of clients. In the summer of 2018, it made headlines when it started offering mutual funds with zero fee ratios and minimum investment requirements.

5. Global State Street Advisor

AUM: $3,86 trillion

Boston-based State Street is a subsidiary of State Street Corporation. It manages investments for a wide range of institutional clients, including nonprofits, local governments, associations, and even educational groups.

6. Morgan Stanley

AUM : $3,274 trillion

Partners and staff from the firm JP Morgan and Drexel formed Morgan Stanley on Wall Street in 1935

When it acquired the investment platform E*TRADE at the end of 2020, Morgan Stanley had approximately 68,000 employees in 39 countries.

7. JPMorgan Chase

AUM: $2,996 trillion

Most people think of JPMorgan Chase as an investment bank, but it also has a strong asset management business. In 2017, $1.3 trillion worth of assets were transferred from BlackRock as part of a new custody arrangement.

8. Allianz

AUM: $2,953 trillion

This German company is basically an insurance company. It also operates two asset management divisions: Allianz Global Investors and PIMCO. Together, Global Investor and PIMCO manage approximately $2.17 trillion in third-party assets as of October 2021.

9. Capital Group

AUM : $2,6 trillion

Capital Group was founded in 1931 in Los Angeles. It employed more than 7,800 associates in 29 offices worldwide as of February 2022.

10. Goldman Sachs

AUM: $2.372 trillion

Asset management is just one of the many services offered by Goldman Sachs. The types of clients it serves include:

  • Global investment manager
  • Banks and brokers
  • Pension
  • Waqf and foundation
  • Corporation
  • Government

In December 2020, Goldman Sachs announced a $750 billion 10-year climate transition and inclusive growth initiative.

Thus the discussion from GICTrade regarding the explanation "Know the Duties and Functions of an Investment Manager". You can also find out other information about commodities, investments, and other finances, such as "Ponzi Schemes, Scams Under the Guise of High-Profit Investments" only in the GIC Journal. Make sure you register through our official website and trade with GIC masters! 
GIC