Trade guide
Portfolio Manager
Portfolio managers work in the world of finance. Their role is to manage a financial portfolio. They also have the task of identifying the investments to be made and establishing the investment strategy. It’s not an easy job, and you need a sound knowledge of economics and finance. It is also essential to be at ease in the banking world and to have a good knowledge of the financial markets.
The business
What is a portfolio manager?
Its role
Portfolio management is the most basic and most important activity of an investment bank. It is also a basic activity, but one that is difficult to carry out properly. However, there are many elements that can be taken into account for good portfolio management.
Consequently, the portfolio manager’s mission is to ensure that the investment funds are invested in the best interests. The portfolio manager ensures that the investment in preferred assets and liquid assets, in particular, is justified by the added value that these investments bring to the portfolio.
Its field of action
The portfolio manager must also determine the investment period for preferred assets and liquid assets in the portfolio. The portfolio manager must also ensure that investments are in line with the portfolio’s objectives,the fund’s investment strategy and the investment policy of the Board of Directors.
The investment policy for the core assets and liquid assets is defined by the Board of Directors. The portfolio manager must ensure that the restrictions in the Board of Directors’ investment policy are complied with.
Qualifications
The qualities and skills needed to be a good portfolio manager
The portfolio manager must be an excellent analyst and be able to identify investment opportunities. They must have an excellent approach to risk and be able to measure their investments. The portfolio manager must also have good internal relations and be a good listener.
To be an effective portfolio manager, you need more than just qualifications. You also need to have certain skills that will help you to manage your clients and your portfolio better. Being a portfolio manager is not an easy job, and you need to work primarily on your business acumen. You need to have a good knowledge of the market and the players in it. A good knowledge of accounting and law is essential. The portfolio manager must be able to face up to the challenges that arise.
They must therefore have knowledge of the following subjects:
Economy
Financial mathematics
Financial calculations
Taxation
Banking regulations
Financial Security Act (LSF)
Characteristics of financial products
General accounting
Market operations accounting
Competitive intelligence
The benefits
What are the advantages of being a portfolio manager?
Portfolio managers may work for different types of company. They may work in a bank or an insurance company, or they may choose to work on their own. In order to train, you need to be familiar with the business. There is a wide range of training courses available, covering different types of activity.
Because portfolio managers are in contact with people, they can build up a network. These relationships can help them in their work or in their future prospects.
Remuneration
Portfolio manager: salary and career development
Portfolio managers’ salaries vary from one employer to another, depending on their experience, area of expertise and the size of the financial institution, among other factors. Portfolio managers are generally remunerated on a flat-rate basis, i.e. they receive a given sum for the work they do, without having to share in the company’s profits or losses. The average salary for a portfolio manager is €5,200 gross per month.
Remuneration also varies according to the sector of activity. Portfolio managers in service companies (financial services and insurance) earn an average of between €2,500 and €6,000 a month.
In terms of career development, portfolio managers can take on management responsibilities by managing teams. It is also possible to move into control and financial management positions.
Up to
6 000€
Monthly salary
Training courses
How can I become a portfolio manager?
Our training courses
A portfolio manager managesfinancial transactions in order to achieve financial objectives and expected results through the management of a portfolio of assets. The job is generally open to :
- holders of a bac +4/+5 in a business or management school (with a finance option) ;
- engineering graduates (with courses in market finance) ;
- Graduates of the École nationale de la statistique (National School of Statistics) or a diploma in economics and finance.
It is also possible to follow a sandwich course and gain access to employment thanks to an RNCP certificate or a master’s degree via our INSEEC training school:
Discover
Other jobs that may interest you
INSEEC offers a wide range of programmes to help you train for your dream job.
All about
Our guides
Consult our guides to find out all you need to know about education, work-linked training and careers.
