Investment Manager

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DEFINITION of 'Investment Manager'

A person or organization that makes investments in portfolios of securities on behalf of clients, in accordance with the investment objectives and parameters defined by these clients. An investment manager may be responsible for all activities associated with the management of client portfolios, from buying and selling securities on a day-to-day basis to portfolio monitoring, settlement of transactions, performance measurement, and regulatory and client reporting.

BREAKING DOWN 'Investment Manager'

Investment managers can range in size from one- or two-person offices to large multi-disciplinary firms with offices in several countries. Fees charged by investment managers to their clients are generally based on a percentage of client assets under management (AUM). For example, an individual with a $5 million portfolio that is being handled by an investment manager who charges 1.5% annually would pay $75,000 in fees.

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RELATED FAQS
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    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
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    Asset management utilizes two main investment strategies that can be used to generate returns: active asset management and ... Read Full Answer >>
  3. What percentage of a diversified portfolio should large cap stocks comprise?

    The percentage of a diversified investment portfolio that should consist of large-cap stocks depends on an individual investor's ... Read Full Answer >>
  4. Why should an investor include an allocation to the telecommunications sector in ...

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