fund manager

Fund manager

The person whose responsibility it is to oversee the allocation of the pool of money invested in a particular mutual fund. The fund manager is charged with investing the money to attain returns consistent with the level of risk outlined in the mutual fund prospectus.

Fund Manager

A bank, business, or, less often, a person that makes investment decisions for a mutual fund. Fund managers make these decisions in accordance with the parameters set by the fund's prospectus. The goal is to make the most profit for the fund as possible. Unlike brokers, fund managers are not paid on commission but by a percentage of the total amount of money under the fund's management. This gives the fund manager an incentive to work for shareholders' profit because the more money the manager accumulates, the more he/she/it makes. See also: Markowitz Portfolio Theory.

fund manager

The supervisor of a pool of investment capital such as that held by a mutual fund, pension fund, or closed-end investment company. The fund manager is charged with making investment decisions that adhere to stated investment objectives.

I choose a particular mutual fund both because I am impressed with its performance or potential and because it strengthens the diversity of my portfolio. Should I also add an assessment of the fund's manager to this equation? If so, what should I consider?

With some 8,000 (and climbing) mutual funds to choose from, it has become a daunting task for individual investors to figure out which is the right one for them. Check out the fees. Read the prospectus. Gather short- and long-term performance data. Compare a fund's historic rate of return against those of its peers—mutual funds that invest in a similar asset class. And, yes, check out the fund manager. As every mutual fund prospectus tells us, past performance is no guarantee of future results. But at least you should know whether those total return figures were achieved by the current money manager or by someone who has moved on. What's more, experience matters in the world of money management, and investors should do a little digging to find out if a fund manager has weathered a bear market as well as a bull market.

Christopher Farrell, Economics Editor, Minnesota Public Radio, heard nationally on Sound Money^®

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

References in periodicals archive ?

This is also a wonderful, costless opportunity for fund managers to promote their services to a vast audience of investors.

Forex-Metal Launches Fund Manager Directory

Muscat: Real estate private equity fund managers around the world continue to face major challenges stemming largely from ongoing illiquidity within the capital markets.

Realty private equity funds face liquidity crunch

Real estate private equity (PE) fund managers around the world continue to face major challenges stemming largely from ongoing illiquidity within the capital markets, a report said.

Real estate PE challenged by liquidity issues

Fund managers overweighted stocks from their home state by 12% compared with stocks from other states, according to the paper, investing an estimated $31 billion per year based on familiarity.

Home-State Bias Problem for Funds

On top of this, the fund manager will charge a proportion, usually 15-20 per cent, of any growth over and above a preset benchmark.

Performance bonuses hit you in the pocket

Under the existing tax regime, the carried interest portion of a fund manager's compensations is generally taxed at the long-term capital gain rate of 15 percent.

Clouds on horizon for private investment funds

According to Zweig, the current market is in many respects the inverse of 2008, which means fund managers that were down then are up now.

Tell us what you really think ..

The announcement may provide a boost for Liverpoolbased Alliance Fund Managers (AFM), which has managed Merseyside's ERDF-backed venture capital fund since 1996.

Small firms to benefit from pounds 184m fund; Euro rate boosts venture pot by pounds 40m

Byline: So how did fund managers fare during the tumultuous first half of August?

Will the foreigners return?

The third annual joint Association of Investment Companies/IFA Promotion poll of around 200 fund managers and Independent Financial Advisers (IFAs) has found the industry looking generally positive about prospects next year, albeit with some differences.

Assess your risk tolerance for new year

"The fund manager has complete discretion relative to the investment management agreement and the strategy therein," McMenomy says.

Property values: real estate property yields real returns for endowments

For example, investors received a recovery from the Dreyfus Aggressive Growth Fund (24) for alleged trading improprieties by the fund manager, and the recipient's tax treatment was not entirely clear.

Taxation of damages from securities lawsuits

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