Investment Manager
- Overview
The Role of an Investment Manager
A Portfolio/Investment Manager is responsible for investing and managing the assets of a family, such as stocks, bonds, currencies and commodities. A Portfolio/Investment Manager can take an active or passive management role, and may use different types of securities and investment products, depending on the family’s investing goals and risk tolerance.
Primary responsibilities include developing and implementing investment practices, preparing and analyzing financial reports, reconciling bank and investment accounts and managing the family office’s cash flow/budget. A Portfolio/Investment Manager may also assist with long term estate planning, charitable giving, risk management and compliance issues.
To become a Portfolio/Investment Manager, one needs a Bachelor’s degree in finance, accounting, or a related field, and may have another degree or certification, such as an MBA, CFA or CPA. A Portfolio/Investment Manager should also have several years of experience in investment management, preferably in a family office or wealth management setting.
- The Role Defined
Job Description
EDUCATION / EXPERIENCE
An Investment Manager requires a Bachelor’s degree in finance, economics, accounting or a related field.
Preference may be given to candidates with a graduate degree, such as a Master’s in Business Administration (MBA), or a professional certification or license such as a CFA, CFP or CPA (discussed below).
Experienced Investment/Portfolio Managers will have 5 – 7 years’ experience in investment management, portfolio analysis or financial planning. This experience should include analyzing investment opportunities, recommending investment strategies, allocating assets, managing risk, measuring performance and conducting market research, at either a family office, wealth management group, bank, hedge fund or private equity firm.
SKILLS
- Strong knowledge of portfolio management, financial analysis and financial modeling
- Experience analyzing investment opportunities, recommending investment strategies, allocating assets, managing risk, measuring performance and conducting market research
- Ability to manage and train junior analysts or associates, with strong communication, consistent feedback and routine performance evaluation
- Strong ethical standards and record of professional conduct
- Current knowledge of the latest trends in the investment industry
- Strong knowledge of Excel and both enterprise and family office investment/wealth management software
CERTIFICATIONS / TRAINING
Formal certification is not required to be an Investment Manager or Portfolio Manager, but an employer may prefer or require candidates to have any of the following certifications:
- Chartered Financial Analyst (CFA): a globally recognized credential for investment professionals that demonstrate competence and integrity in financial analysis, portfolio management, and ethical standards. Candidates must pass three levels of exams, have four years of relevant work experience and adhere to a code of ethics and professional conduct.
- Certified Financial Planner (CFP): a credential for financial planners that help clients achieve financial goals through comprehensive and personalized financial planning. Candidates must meet an education requirement (completing a CFP Board-registered program or holding certain degrees or credentials), an exam (covering financial planning topics such as retirement, taxes, insurance, and estate planning), experience requirement (completing either 6,000 hours of professional experience related to financial planning or 4,000 hours of apprenticeship experience) and an ethics requirement (agreeing to abide by the CFP Board’s code of ethics and standards of conduct).
- Certified Investment Management Analyst (CIMA): a credential for investment advisors and consultants who have advanced knowledge and skills in investment management. Candidates must complete an executive education program at a registered education provider, pass an online and live exam, have three years of relevant work experience and adhere to a code of professional responsibility.
RESPONSIBILITIES
An Investment Manager’s responsibilities depend on the size and scope of the family office’s investing activity. For example, a family office that has a diversified portfolio of assets across various sectors, geographies or asset classes may require an analyst with more expertise and guidance than one investing primarily in public markets or with a limited number of holdings. Common duties of an Investment Manager include:
- Developing and implementing investment strategies and policies for the family office, such as asset allocation, risk management and portfolio construction
- Ensuring that the family office complies with all relevant investment standards, laws, regulations and ethical principles, and that the family’s interests and assets are protected
- Managing the investment team and overseeing the daily operations and workflows of the investment department
- Providing strategic advice and counsel to the family office’s executive team, board of directors and family members on various investment matters, such as financial performance, tax planning and risk management
- Coordinating and overseeing the work of external investment advisors and service providers, such as fund managers, brokers and custodians, and ensuring that the family office receives high-quality and cost-effective investment service
- Preparing and reviewing investment reports and presentations for the family office and the family members, such as portfolio performance, market updates, and investment recommendations
- Researching and identifying new potential investments and opportunities for the family office, as well as monitoring and evaluating existing investments and portfolio companies
- Supporting the investment decision-making process of the family office’s executive team and family members, by providing relevant data, insights and opinions
- Keeping abreast of the latest investment developments and trends that may affect the family office or the family’s activities, and providing timely and proactive investment updates and insights to the family office’s executive team and board of directors
- Educating and training the family office’s staff and family members on relevant investment topics and skills, and creating a culture of investment awareness and compliance within the family office
- Supporting the family office’s strategic planning and decision-making, and providing investment input and analysis on various business opportunities and initiatives
ATTRIBUTES
Investment expertise
An Investment Manager to a family office must have strong investment expertise and the ability to manage complex and diverse portfolios. Family offices often have a multi-generational perspective and a holistic approach to wealth management, which requires an understanding of the family’s goals, values, and preferences. An Investment Manager must be able to design and implement an investment strategy that aligns with the family’s vision and objectives, and balances risk and return across various asset classes, markets, and sectors. An Investment Manager must also be able to monitor and evaluate the performance and risk of the portfolio, and make timely and informed adjustments as needed.
Relationship management
An Investment Manager to a family office must have relationship management and the ability to build and maintain trust and rapport with the family members, other family office staff, and external advisers. Family offices serve the needs and interests of ultra-high net worth individuals and families, who expect the highest standards of quality, confidentiality, and responsiveness. An Investment Manager must be able to communicate effectively and respectfully with the family members, and provide them with clear and concise information and reports. An Investment Manager must also be able to collaborate and coordinate with other family office professionals, such as lawyers, accountants, tax advisers, and personal assistants, and leverage their expertise and insights. An Investment Manager must also be able to source, select, and oversee external investment managers and advisers, and ensure that they deliver on their mandates and align with the family’s interests.
Leadership skills
An Investment Manager to a family office must have leadership skills and the ability to inspire and motivate others. Family offices are often composed of multidisciplinary teams of professionals, who work together to provide comprehensive and integrated services to the family. An Investment Manager must be able to lead and manage the investment team, and provide them with direction, guidance, and feedback. An Investment Manager must also be able to foster a culture of excellence, innovation, and collaboration within the family office, and promote the family’s values and vision. An Investment Manager must also be able to represent the family office in external forums, such as industry events, conferences, and media, and enhance the family’s reputation and influence.
Adaptability and learning
An Investment Manager to a family office must have adaptability and learning and the ability to cope with change and uncertainty. Family offices operate in a dynamic and complex environment, where they face various challenges and opportunities, such as market volatility, regulatory changes, technological disruptions, and generational transitions. An Investment Manager must be able to adapt and respond to these changes, and seize the opportunities that arise. An Investment Manager must also be able to learn and grow from experience, and continuously update and improve their knowledge and skills. An Investment Manager must also be open to new ideas and perspectives, and embrace diversity and innovation.
COMPENSATION
Total compensation for an Investment/Portfolio Manager at a family office is between $100,000 – 300,000. Factors that command a higher salary include specific education/certification requirements, industry experience, size of the investing team and scope of work. Components of an Investment Manager’s compensation may include:
Base salary
A fixed annual amount received for performing duties as agreed upon at the time of hiring. An Investment Manager’s base salary varies depending on a principal’s AUM, type of investing activity, family office staff present, as well as the overall experience and qualifications of the employee.
Discretionary Bonus
Discretionary bonuses are variable amounts that are paid annually, based on an individual’s performance. The percentage of compensation paid as a salary versus a bonus is entirely up to the employer, but for an Investment Manager, a discretionary bonus will most likely account for 15 – 20% of total compensation. The most common reason for a higher bonus percentage (relative to salary) is to tie an employee’s compensation to their overall performance. It also allows an employer to set strategic goals during the employee’s annual performance evaluation, with the pay out of their bonus linked to the completion of stated goals.
Carried Interest
Carried interest is a common fund/wealth management reward structure, wherein senior investment staff receive a specific percentage of net gain in investment returns in portfolios above a hurdle rate or cost of capital. Carried interest may be applied to an entire portfolio or to specific investments. This incentive is typically restricted to the CEO, CIO and senior IM staff in a family office, where current AUM exceeds $200M. Percent carry varies from 1% all the way up to 20%, depending on the size of the family office.
Equity
With equity compensation, a portion of an employee’s compensation is paid in options, restricted stock or performance shares, which represents ownership in a business or fund owned or managed by the principal. Options can have a vesting period and/or expiration date, which affects their overall value. Equity compensation strongly incentivizes long-term employment and can be a great tool for building a team that is dedicated, loyal and aligned with the overall vision of the principal/family office.
Co-investment
The opportunity to invest alongside the family office in various deals or projects that are sourced or executed by the family office. Co-investment opportunities can allow an Investment Manager to benefit from favorable investing terms, access to exclusive deals or higher returns. Co-investment terms may or may not require executives to commit a portion of their compensation directly to family office investments, to ensure that both parties share in the risk and/or potential profit of an investment.
STANDARD BENEFITS
An Investment Manager will typically have access to the following corporate-style benefits:
Medical, dental and vision
Standard health benefits help employees stay healthy, reduce absenteeism and ultimately increase productivity.
Retirement savings account
401k, thrift savings plan or simple IRA, especially with employer matched contributions, shows your employees your commitment to their future.
Paid time off
PTO allows your employees to take time off from work for various reasons, such as vacation, sickness, personal matters or holidays.
Travel/miscellaneous expenses
Expenses incurred when travelling or conducting business on behalf of the principal(s). Expenses may include transportation, accommodations, meals and other costs related to business travel and may be reimbursed or covered by an allowance or budget.
OTHER BENEFITS / "PERKS"
Additional benefits are often included to enhance the attractiveness of an employment offer, as well as encouraging long-term employment. Such benefits include:
Education
- Tuition reimbursement, scholarships/savings plans for those with college-aged children
Professional development
- Encouraging and covering an employee’s participation in training courses, workshops, seminars, conferences or professional certifications
Health and wellness
- Healthy food, beverages or snacks offered at the office
- Paid or discounted gym memberships or fitness classes
- Access to wellness programs with counseling services, health screenings, substance abuse treatment, etc.
- Life and disability insurance
Employee assistance
- Financial counseling
- Legal advice
- Transportation reimbursement or allowance
Charity
- Volunteer opportunities
- PTO days for community service
- Charitable match program
Family benefits
- On-site childcare or childcare reimbursements
- Parental and family medical leave
Workplace
- Remote work/flexible hours
- Casual work attire
- Employee recognition programs, awards or rewards
REPORT STRUCTURE
An Investment Manager typically reports:
- To a Chief Investment Officer (CIO)
- To the head of the family office (Managing Director or Chief Executive Officer)
- To other designated staff, such as a Chief Operating Officer or Chief of Staff
If this role is managerial in nature, this person may also be responsible for managing Investment Analysts or Associates.
One Investment at a Time
An Investment/Portfolio Manager is a trusted advisor who ensures your wealth is working for you. With expertise in asset management, risk assessment, and strategic financial planning, they create customized investment strategies aligned with your long-term goals. Whether managing family office assets, private investments, or diversified portfolios, they bring financial acumen and deep market insights to protect and grow your wealth.
Looking to optimize your investment portfolio? Let us connect you with an Investment Manager who brings experience, strategy, and results to your financial future.
Adam Cook
Managing Director, Old State Staffing
- Strategic Wealth Management
Invest With Confidence
Why You Should Consider an Investment Manager
A skilled Investment Manager provides the insight and expertise needed to maximize financial opportunities while minimizing risk. With a keen understanding of markets and a tailored approach to wealth management, they ensure your portfolio aligns with your financial vision. An Investment Manager can help you:
- Develop and execute investment strategies
- Manage risk while optimizing portfolio performance
- Provide market analysis and financial forecasting
- Oversee private equity, alternative investments, and traditional assets
- Ensure long-term financial growth and stability
Hiring an Investment Manager means having a dedicated professional who ensures your wealth is protected, optimized, and strategically positioned for future success.
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