Essay on Fund Managers

1335 Words Sep 12th, 2013 6 Pages
The Duties & Functions of Fund Managers
By Thomas James, eHow Contributor
A fund manager is an individual who manages a large quantity of investments on behalf of many other individuals and institutions. Another name for a fund manager is an investment manager or investment advisor. The investments a fund manager may manage include bonds, shares in companies, real estate and even holdings in other investment funds. The term "fund manager" can also refer to an institution that manages funds, as well as an individual fund manager.

Wealth Protection

• The most important duty of a fund manager is to ensure that the wealth of his investors is protected. In order to do this, a fund manager employs sophisticated risk management
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This approach is called "minding your portfolio" and is associated with the investment style known as value investing.

Representation

• When fund managers buy shares in publicly listed companies, they are purchasing these shares on behalf of those who have invested in their fund. As such, another duty of fund managers is to represent the interests of shareholders to the management of the company. Some fund managers buy shares in companies specifically so they can influence decisions made by management. These fund managers are called activist fund managers and can prove successful.

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The Duties & Functions of Fund Managers

When individuals and institutions invest in a fund, they actually invest in the fund's manager. He is responsible for managing the fund's investments and ensuring that the fund's strategy is aligned with its goals. He is also responsible for the overall operation of the fund, from customer service to risk management. Therefore, investors should consider fund managers a key factor in their selection of a fund.

Reporting

Fund managers must ensure their funds' reporting requirements are met. Funds are designed with different strategies and objectives and have different risks, policies and expenses. These details are important

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