{"id":4176,"date":"2021-04-25T22:06:50","date_gmt":"2021-04-25T21:06:50","guid":{"rendered":"https:\/\/www.simtrade.fr\/blog_simtrade\/?p=4176"},"modified":"2025-02-16T22:54:54","modified_gmt":"2025-02-16T22:54:54","slug":"portfolio-manager-job-description","status":"publish","type":"post","link":"https:\/\/www.simtrade.fr\/blog_simtrade\/portfolio-manager-job-description\/","title":{"rendered":"Portfolio manager – Job description"},"content":{"rendered":"

Portfolio manager \u2013 Job description<\/h1>\n

\"Akshit<\/a><\/p>\n

This article written by Akshit GUPTA<\/a>\u00a0(ESSEC Business School, Grande Ecole<\/i> Program – Master in Management, 2019-2022) presents the job description of a Portfolio manager<\/em>.<\/p>\n

Introduction<\/h2>\n

A portfolio manager is an employee responsible for developing, implementing, analyzing, and managing the asset portfolios of the clients (institutional or retail investors) of the asset management firm he\/she is working with. The aim of a portfolio manager is to understand the investment objective of his\/her clients and provide good performance for his\/her clients\u2019 portfolios. The portfolio managed by the asset manager consists of different securities including equities, bonds, commodities, currencies, etc.<\/p>\n

Types of portfolio managers<\/h2>\n

In general, a portfolio manager is responsible for advising or managing a client\u2019s portfolio using various strategies which include top-down approach or bottom-up approach.<\/p>\n

The top-down approach refers to studying the economic trends, sector analysis and looking for suitable asset classes (sectors and countries) to invest in.<\/p>\n

Whereas, in bottom-up approach the manager majorly focuses on studying the financial information about different asset and then moves to sector and economic analysis.<\/p>\n

The professional working as portfolio managers can be divided into two categories namely, buy side managers and sell side managers.<\/p>\n

Buy-side portfolio managers<\/h3>\n

Buy-side managers generally work in asset management firms, investment funds, and trading firms. The managers receive financial and non-financial data of different asset classes from financial analysts.
\nThey portfolio managers are responsible for designing and managing the portfolios of clients based on the financial analyst\u2019s reports, client\u2019s investment objectives and return expectations.
\nBuy-side managers are commonly more prestigious than sell-side managers. The competition is stiffer and entry into this job requires a knowledge of finance and a strong experience in the sector followed.<\/p>\n

Sell-side portfolio managers<\/h3>\n

Sell-side managers are generally employed by the research division of investment banks, investment firms, brokerage houses and hedge funds. The managers are responsible for providing insights about the latest trends, developments, and financial projections about target companies. They generate reports on the basis of their analysis and provides recommendations for investment decisions to the firm\u2019s clients.
\nThe sell-side managers usually specialize in a particular sector or a geographical region and produce reports within that area.<\/p>\n

Duties of a portfolio manager<\/h2>\n

Portfolio managers study the economic conditions, financial information pertaining to companies and investment strategies to manage the asset portfolio of their clients. More specifically, the important duties of a portfolio manager include the following:<\/p>\n

Understanding client\u2019s investment objectives \u2013 Different clients have different investment criteria based on their capital availability, duration of investments and financial position. A portfolio manager is responsible for understanding the clients\u2019 needs, risk appetite and return expectations to design a suitable portfolio.<\/p>\n

Studying market trends \u2013 Several economic, sector or asset-based factors affects the performance of a portfolio managed by a professional. A portfolio manager is responsible for studying and understanding the economic, sector and asset-based trends in a market.<\/p>\n

Optimizing client\u2019s portfolio – By studying and understanding the trends in the market, a portfolio manager should optimize the investments made for different clients. He should be able to understand different asset classes including fixed income, equities, commodities, and foreign currencies. The knowledge helps the manager to strategically allocate investments to different assets and maximize the returns for their clients.<\/p>\n

Generating investment reports \u2013 A portfolio manager must generate and share investment reports with the clients at different time intervals. An investment report generally includes the portfolio\u2019s value, asset performance and latest trends in the market based on the manager\u2019s analysis.<\/p>\n

With whom does a portfolio manager work?<\/h2>\n

A portfolio manager depending on the buy or sell side he\/she is employed in, works in tandem with many internal and external stakeholders:<\/p>\n