fund manager

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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®
References in periodicals archive ?
Hedge fund managers can also view fund activity and holdings in real time -- their own and others' -- gaining valuable insights into different investment styles.
With the BSE Sensex near all-time highs, fund managers, rather than being cautious, are buoyant.
He further continues, This allows fund managers to focus on managing their funds, while ensuring that aspects like governance and reporting are handled by specialists.
The challenges outlined in the report include tougher regulatory requirements imposed on fund managers - such as the Alternative Investment Fund Manager Directive (AIMFD) in Europe and the Dodd-Frank Act in the US - and tighter 'regulation' from investors in the form of calls for greater transparency and oversight on their
FUND managers are mutual fund industry's most celebrated figures.
Jane Reynolds, who is driving development of the CONNECT North East across Teesside, says the event will be the opportunity to gain greater clarity about the different funds available and who the fund managers are.
Among the most controversial provisions of the act is the long-debated taxation of the "carried interest" earned by fund managers as part of their compensation (one of the "tax loopholes" suggested by the act's title).
Hedge fund managers became the centre of attraction after the credit crisis as they are believed to be one of the reasons for the credit crisis.
The TUC said that for the second year running the number of fund managers replying to a survey had fallen, with just 25 out of 55 responding.
Plus, hedge fund managers run organizations that are much smaller than major companies, which implies they are less complex and less difficult to manage.
1 in the latest ranking by Institutional Investor's Alpha of the world's most highly paid hedge fund managers.
Hedge fund managers typically earn 1% to 2% of assets under management, plus 20% of any gains annually.

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