how a money manager works
money managers provide their clients with personalized service an individualized portfolio and ongoing management with fee based management as opposed to transaction based management the client and his or her adviser are on the same side which means clients no longer have to question the decisions of a broker to buy or sell their securities a professional money manager does not receive commissions on transactions and is paid based on a percentage of assets under management thus it is in the best interest of both the money manager and client to see the portfolio grow reasons to use a money managera professionally trained money manager has the expertise to select the most appropriate investments for his or her client s portfolio money managers typically hold a chartered financial analyst cfa designation that helps them assess a company s fundamentals by analyzing their financial statements a money manager may also have expertise in a specific sector for example the manager may have previously held roles in the automotive industry that provides an edge when selecting auto stocks money managers have access to a plethora of information and tools such as interviews with company executives research reports analytics data and advanced financial modeling software having these resources allows money managers to make investment decisions that have a higher probability of success for instance a money manager might discover that a company has a unique competitive advantage after interviewing its ceo median money manager annual salary in the u s as of may 2020 according to the u s bureau of labor statistics 1