The person managing your money is likely an investment manager, a highly-trained professional in the financial services industry. She manages investment portfolios that include all kinds of securities, including the mutual funds so popular with investors.
An “investment manager”, “money manager” or “portfolio manager” is someone who oversees investment portfolios, and who is regulated by governments under securities legislation.
An investment manager may work for a large financial institution, such as a bank, life insurance or trust company, either managing that firm’s portfolio or providing management directly to third party clients. Managing money for other people is called “investment counselling”. Firms providing this service must have an “investment counsel” registration and must license their portfolio managers as investment counsel. There is an educational requirement, including completion of the first year of the CFA program, as well as an experience requirement.
Managing portfolios without requiring client approval for actions is called “discretionary” money management. The investment manager will manage the portfolio independently, according to an established investment policy. The investment managers that most people are familiar with are mutual fund managers. They are investment managers who manage a pool of money called a “mutual fund”. The mutual fund company who sponsors the fund either employs the manager or appoints an external investment manager.
