A fund manager is a professional who manages assets or groups of assets. These could include bonds, shares of stock, and other kinds of securities. It could even include assets like real estate. Typically, these fund managers have certain goals they have to meet in order to please groups of investors.
Fund Management Vs. Asset Management
Asset management: This term usually refers to managing a collection of assets.
Fund management: This is a more general term that could be used to describe managing different kinds of institutional investments or managing funds that private, individual investors hold.
Money or portfolio management: This term is usually applied to asset managers who work for private investors.
Information That Fund Managers Use
Whatever they call themselves, all of these fund managers use similar tools to gather, analyze and share information about investments. These tools may include the following:
- Financial analysis of company financial statements
- Asset and stock selection
- Ongoing monitoring of how well assets actually live up to goals
The Size Of the Fund Management Market in the USA
A number of assets that are professional might astound some folks. According to a study by one consulting firm, the total number of assets that were professionally managed amounted to $62.4 trillion by 2012. This was an all-time high.
Despite how large this market is, there aren’t a huge variety of funds that are commonly used. These are some statistics to support this point:
- The number of funds totals about 70,000.
- Just about 99 percent of all American investment money got invested into only 185 different funds.
- Even more surprising, over half of all of these fund managers say that most of their investment dollars get invested into only three different funds.
Fund managers may also specialize or cover several different aspects of this field. For example, some mostly do research, others make deals and settlements while some may spend most of their time preparing reports for and meeting with clients. Big fund management companies are very large and complex, but there are self-employed fund managers who cover a variety of aspects of this profession by themselves or with a very small staff.
In any case, the amount of funds that fall under the protection of these managers has grown substantially. These are some examples of these different kinds of funds broken into various types:
- Conventional assets: About $80 trillion
- Pension: About $30 trillion
For pension funds, for example, there was an almost even split between mutual and insurance funds.
Compliance Reporting for Fund Managers
The government has begun to get a bit more involved in the way that these funds are managed. There is some talk they may get more involved in the future. That means that fund managers must be careful to guard sensitive information and make necessary reports to the government at the same time. In the US, fund managers control a great portion of the country’s wealth.