Hot MBA Jobs: Investment Fund Manager
Everyone who decides to spend time going back to business school and earn an MBA knows a thing or two about investments—going out and getting a graduate degree is an investment of time, resources and money. For some MBAs, though, the investment doesn’t stop there—investment management is a hot job for those moving on from business school.
Investment management is the professional asset management of various stocks, bonds and other assets in order to meet specified investment goals for the benefit of the investors. Investors can range from insurance companies, pension funds, corporations, charities, educational establishments or private investors via collective investment schemes such as mutual funds or exchange-traded funds.
Investors usually don’t make these decisions on their own, though. Instead they rely on high-trained investment fund managers do make the right calls with their money. According to the Boston Consulting Group, assets managed professionally reached an all-time high of $62.4 trillion in 2012.
According to Investopedia, investment managers can also be called portfolio managers, wealth managers, asset managers or financial advisors. These individuals develops and implement investment strategies for individuals or institutional investors.
TargetJobs details that investment fund managers work very closely with investment analysts who provide financial information and recommendations that enable such decisions to be made. Chron, a Houston news network, breaks down four of the duties and functions of an investment fund manager:
- Reporting: Fund managers are responsible for ensuring that prospectuses and other documents are completed, filed and distributed as regulations require.
- Compliance: Fund managers must also ensure their funds operate in accordance with regulations outlined by authorities, such as the Securities and Exchange Commission.
- Growth and Performance: Fund managers are judged by how well their fund performs and need to deliver growth that exceeds interest rates and the rate of inflation to justify the risks of investing.
- Wealth Protection: Most of all, fund managers have a responsibility to protect an investor’s money and address risk by ensuring asset portfolios are sufficiently diversified.
Other tasks typical to an investment fund manager include:
- Regularly meeting with investment analysts and company managers to discuss financial matters
- Researching companies
- Gathering information
- Reading financial briefings (often written by investment analysts)
- Making informed financial recommendations and decisions
- Keeping knowledge up-to-date about the UK economy, current financial news and financial markets
- Assessing and interpreting complicated financial information
- Liaising with clients.
Recruiter.com reports that investment fund managers earn between $80,000 and $120,000, annually based on tenure level. They can also expect the highest salaries in the District of Columbia ($12,4070 per year). Some, like Investment fund managers are oftentimes employed by:
- Investment banks
- Investment and asset management companies
- Insurance and life assurance companies
Some MBA programs feature a concentration in investment management. One such program is the McCombs School of Business. According to the school:
The investment management field involves analysis of various types of financial securities and management of investment portfolios. After graduating, students commonly start their careers as financial analysts for investment funds, investment banks or other financial institutions. These positions are responsible for analyzing complex financial instruments including common stocks, fixed-income securities, futures, options and different forms of derivative securities. As investment bankers, they may become involved in trading financial instruments, analysis of mergers and acquisition decisions, and helping corporations with their equity and debt financing.
But what sets McCombs apart when it comes to investment management is the MBA Investment Fund, L.L.C., which is the first legally constituted, private investment company to be managed by students. The fund was created to enable MBA students to obtain real-world experience managing investment portfolios and developing relationships with clients.
The fund launched on Dec. 8, 1994 with $1.6 million invested by accredited investors and as of May 2013 has grown to approximately 42 investors and $17.1 million under management in three different investment products:
- A growth-oriented equity portfolio
- A value-oriented equity portfolio
- An endowment portfolio, which support the activities of the AIM Investment Center.
The fund was created by Dr. George W. Gau of the McCombs School of Business and founding director of the Financial Education and Research Center. It is currently directed by Dr. Keith Brown and Sanford Leeds, Esq. and features a select group of up to 20 students each year.