What does a Portfolio Manager do?

Portfolio Managers work for wealth management companies, foundations, insurance companies, hedge funds, pension funds, foundations and other organizations. They manage investment portfolios that may include stocks, bonds, mutual funds and commodities. Depending on their employer, a Portfolio Manager may manage portfolios for multiple individual or organizational clients or be responsible only for managing their employer’s own portfolio. When Portfolio Managers perform their job duties proficiently, they contribute to the financial success of their clients or employers, helping them earn favorable returns to grow their wealth and ensure compliance with federal laws to limit liabilities.

Portfolio Manager skills and qualifications

A strong skill set can help Portfolio Managers succeed in their roles. Some qualifications you may wish to include in your job description for a Portfolio Manager are:

• In-depth understanding of finance, risk management and investing
• Strong written communication skills to create detailed, yet concise reports
• Analytical skills to interpret complex financial information
• Decision-making skills to respond to market conditions and take decisive action when needed
• Demonstrated oral communication skills to interact with clients and give presentations
• Interpersonal skills to ensure positive interactions with clients and coworkers
• Computer skills to utilize financial, presentation and communication software programs and apps
• Working knowledge of laws and regulations governing investments

Portfolio Manager experience requirements

How much experience a Portfolio Manager needs depends largely upon how much responsibility and supervision they will have. Associate Portfolio Managers who will work under the supervision of other managers typically need a few years of related work experience in finance and investments. If you’re looking to fill a mid-level or senior position, you may wish to specify that candidates should have at least a few years of previous work experience as an Associate Portfolio Manager in your Portfolio Manager job description.

Portfolio Manager education and training requirements

Generally, a bachelor’s degree in finance, business or economics is the minimum education required to work as a Portfolio Manager. For senior positions, you may wish to prioritize candidates who have a master’s degree in one of these fields.

Most employers prefer to hire candidates who have earned the Chartered Financial Analyst (CFA) designation from the CFA Institute. To qualify for this certification, finance professionals must meet work experience requirements, submit letters of reference and pass a rigorous three-part examination.

The Academy of Certified Portfolio Managers also offers a voluntary certification for Portfolio Managers called the Certified Portfolio Manager (CPM). To earn this credential, Portfolio Managers must have at least a bachelor’s degree in finance or a similar field plus three years of work experience in finance, complete a training program that lasts 150 to 200 hours and pass an examination.

Job description samples for similar positions

If the job description for a Portfolio Manager isn’t an exact match for your open position, consider these related job titles:

• Finance Manager
• Finance Project Manager
• Chief Investment Officer
• Financial Analyst

Portfolio Manager job description FAQs

What’s the difference between a Portfolio Manager and a Wealth Manager?

A Wealth Manager develops and implements plans to help clients accomplish goals like saving for retirement, reducing their tax liabilities or preserving and passing wealth along to heirs. A Portfolio Manager’s focus is on managing an asset portfolio. While they often offer investment advice, a Wealth Manager also typically provides tax and accounting services that a Portfolio Manager doesn’t offer.

What’s the difference between a Portfolio Manager and an Asset Manager?

An Asset Manager is the individual responsible for buying and selling securities to create a portfolio on behalf of a fund or individual. Once that portfolio is created, the Portfolio Manager is then responsible for overseeing it. Asset Managers are generally sales-focused, while Portfolio Managers are not.