Money Manager

Money manager

Related: Investment manager.

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money manager

See portfolio manager.

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Money Manager

A bank or business ? or, less often, a person ? that controls an investment portfolio on behalf of a client. Money managers make investment decisions on behalf of the client in accordance with the parameters set by the client. The goal is to make the most profit for the client as possible. Some money managers have more autonomy than others, depending upon the client's needs and desires. Institutional money managers normally hire a team to work on the different accounts they have under management. Unlike brokers, money managers are not paid on commission, but by a percentage of the total amount of money under management. This gives the money manager an incentive to work for the client's profit, as the more money the manager accumulates, the more he/she/it makes. A money manager is also known as an investment manager or portfolio manager. See also: Advisory account, Discretionary account, Markowitz Portfolio Theory.

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Money manager. Registered money managers are paid professionals who are responsible for handling the securities portfolios they oversee in the best interest of the institutions or individuals for whom they work. That obligation is known as fiduciary responsibility.

The specific decisions an individual money manager makes vary, depending on the portfolio in question. For example, pension funds, mutual funds, and insurance companies have money managers, as do endowments, managed accounts, and hedge funds.

The portfolio that the manager constructs and the amount and timing of the trading he or she authorizes are directly linked to the portfolio's investment objective and risk profile.