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from Wise
Geek
For the
investor who wants to make money in the financial market, but doesn’t have the
time or desire to continuously manage a portfolio, there are a variety of asset management services available. One of the
professions in the field of such services is that of investment fundmanager. An investment fund manager assists clients in investing
their money in stocks, bonds, and other assets. Investment management is a very
large global industry, responsible for the care and investment of many
trillions of U.S. Dollars (USD), as well as investments in many other
currencies.
An
investment fund manager can be an individual or a firm, whose work tends to
fall into two distinct categories. The first category consists of those who
offer direct financial advice to individuals and businesses. These investment
advisers are often employed through banks and other financial institutions to
perform services such as financial planning for clients of the institution.
The second type of investment fund manager consists of those who offer asset
management services for clients such as corporations, hedge funds, insurance companies and pension
funds. Investment fund managers who work for these types of clients are
typically responsible for very large sums of money.
In the
U.S., there is a complex process of registration involved in becoming an
investment fund manager, sometimes involving registration with state and
federal government authorities, examination requirements, and other important
steps. Whether or not an investment fund manager must register with the
Securities and Exchange Commission (SEC), for example, will depend on the
amount of assets under management (AUM) at the firm. In order for
a firm to be able to register with the SEC, the firm must have at least $25
million USD of AUM, and if it has at least $30 million USD of AUM, it is
required to register. If the firm has less than $25 million of AUM and doesn’t
anticipate that that will change in the next 120 days, then it is required to
register with the state, rather than the federal government.
In
light of the large sums of money which fund managers control, they owe their
clients, under U.S. law, an ongoing fiduciary duty. This means that an investment fund manager
will be open and honest with his client, providing full disclosure of all fees
and possible conflicts of interest. The fund manager, in complying with his
duty, is committed to select investments with only his clients’ best interests
in mind.
Article
from Wise
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