Asset managers are skilled financial services professionals. They focus their career on managing clients’ investment portfolios to maximize their returns. As mid- to upper-level financial managers, asset managers invest on behalf of their clients according to their monetary growth goals. It’s their duty to spread funding amongst a wide range of securities products to maintain clients’ good financial health with minimal losses. Some asset managers specialize in real estate. They oversee their clients’ revenue streams from residential or commercial property investments. Due to the expense of asset management services, managers typically only work with individuals and corporations with high net worth. Asset managers meet frequently with their invested clients to explain financial moves taken and ways to improve portfolio performance.
Salary
The Bureau of Labor Statistics reports that the 654,790 financial managers, including asset managers, in America earn an average annual salary of $147,530. This is a mean hourly wage of $70.93. Asset managers working for credit intermediation companies earn less than average at $120,620. Those employed directly by securities and commodity brokerages make an average $201,790 yearly.
Beginning Salary
When first promoted, asset managers generally land in the bottom 10th percentile of earnings with an annual income of around $68,370. However, asset managers with years of experience and lucrative client bases can make upwards of $208,000 each year. Some of the richest asset managers could eventually surpass the million-dollar mark.
Key Responsibilities
For a client’s investments, asset managers have the primary responsibility of choosing the right mix of:
- securities
- funds
- products
- properties
Managers must develop effective strategies for increasing asset returns and making clients greatly profit. Asset managers usually handle all paperwork involved with buying, selling, merging, and modifying their clients’ assets. Other typical daily duties include:
- making investment decisions
- monitoring the status of funds
- tracking economic trends
- overseeing payments for loans
- writing financial reports
- making sure legal regulations are met
- finding new investment opportunities
- and controlling monetary risks
Asset managers often form recommendations for clients to maximize the value of their holdings.
Necessary Skills
Becoming successful in asset management requires having excellent critical thinking skills. Asset managers make quick split-second investing decisions that protect clients’ money. Asset managers must be skilled communicators with the interpersonal skills to convey how clients’ portfolios are performing in an easy-to-understand manner. Organizational skills are crucial because asset managers must track various asset statistics for their records and reports. Being a math lover with great analytical skills is important to compare complex financial products. Asset managers should be detail-oriented and attentive to avoid errors in their calculations. It’s also important for asset managers to have computer skills for using software that analyzes and forecasts data.
Degree and Education Requirements
Jobs for asset management nearly always require having at least a bachelor’s degree from an accredited post-secondary institution. Most asset managers earn an undergraduate major in:
- finance
- business administration
- statistics
- mathematics
- economics
Employers often prefer hiring asset managers who have pursued a master’s degree in graduate school. Earning a Master of Science in Finance (MSF) or Master of Business Administration (MBA) in Finance would be the most valuable. If possible, take courses in:
- financial statement analysis
- asset management
- portfolio management
- security trading
- corporate finance
Some universities also offer a Master of Science in Investment Management.
Pros and Cons of the Position
Like other careers in the financial sector, asset management comes with its fair share of advantages and drawbacks. On the pro side, asset managers earn an above-average yearly salary that surpasses the six-figure mark with no upward limit. Excellent benefits, bonuses, and commissions make it especially lucrative. Asset managers have the ability to oversee large financial sums for some of the world’s wealthiest people. It’s possible to enter asset management with only a bachelor’s degree. There’s also room for advancement into hedge or mutual fund management. However, asset managers deal with above-average stress in meeting tight deadlines and minimizing losses when the market plummets. Competition for job openings is especially fierce thanks to the lucrative salary. Asset managers usually work long hours beyond the 9-to-5 for up to 70 hours weekly. A significant amount of experience is also needed to begin in asset management.
Getting Started
While earning your degree, begin crafting an impressive resume with:
- internships
- co-ops
- part-time jobs
Search for entry-level positions in investment banking or financial planning to gain work experience. Before advancing, some work as:
- loan officers
- accountants
- financial analysts
Jump on every opportunity to manage clients’ real assets. If offered, complete a management training program at your bank or brokerage. Many master’s programs are delivered online, so keep working full-time while attending graduate school in a convenient distance format. Although it’s not required, professional certification can significantly aid in advancement. The CFA Institute offers the asset management field’s most prestigious credential, Chartered Financial Analyst. For this title, you must:
- earn a bachelor’s degree
- gain four or more years of experience
- pass three rigorous exams
Becoming a member of the Institute of Asset Management (IAM) is also smart for extra training and networking.
Future Outlook
Growth in the asset management field will differ by industry, but the overall outlook looks bright. As America’s economy recovers, individuals and corporations will have more savings to invest smartly in various financial products. Companies with operations in foreign countries have especially been accumulating more cash on their balance sheets. There will be a need for asset managers to plan and coordinate investments on their behalf. According to the BLS, the employment of financial managers is expected to grow faster (16 percent) than average (five percent) through the year 2028. Keep in mind that new asset managers face heated competition like other managerial jobs. The best prospects are found in:
- asset management firms
- financial services institutions
- securities brokerages
- private corporations
- investment banks
- government agencies
Asset managers play a pivotal role in helping individuals and businesses with high net worth obtain the best possible returns. Managers will oversee all types of assets, including:
- stocks
- hedge funds
- properties
- equipment
- goods
- cash flow
Asset management is essential to coordinate the buying and selling of assets at the right time to maximize clients’ portfolios. When you become an asset manager, you’ll begin a lucrative, rewarding career implementing value-added strategies that positively impact financial health.
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