See: Mutual Fund.
The manager is the person or group of people who call the shots, buying and selling big blocks of stocks and bonds, hoping to beat their index, or whatever "bogey" or hurdle they're given as their relevant index target. Beat the market, and they get paid handsomely; lose to index funds and they get fired and/or their fund shrinks into oblivion.
The managed money mutual fund industry is dying, as index funds have done vastly better over time than mutual funds in today's hotly competitive and contested markets, where picking winners has become way harder than it was in the 1960s when mutual funds were a growth industry.
If the gig still tickles you, though, you can read all about it on Shmoop.
Related or Semi-related Video
Finance: What Does a Personal Wealth Man...84 Views
finance a la shmoop what does a personal wealth manager do? hmm
personal wealth. sounds like a big rich guy rolling around in hundred-dollar bills [man rolls in money]
instead of a mattress. yeah intimate greedish, money licious .so the gallon guy
behind the screen here usually comes from a stockbrokers background. they
understand that heavy but kissing of that gig. yeah like that it needs to be
done to keep difficult wealthy clients happy, so they'll continue paying the 1% [man smiles]
change a year fee plus whatever other charges they incur like commissions and
oh you know the other fees. other beware of other. the job is generally housed
inside of investment banks like Goldman Sachs Morgan Stanley JP Morgan and [skyscrapers]
others and the banks generally charge that 1% for managing a client's money
each year year after year after year. so if a wealth manager is handling the
savings for a client with a hundred million bucks invested with them well
the fee for just that one client is a million bucks a year and the wealth
manager has heft or leverage or power. when they negotiate on the client's [equations]
behalf to get into whatever theoretically exclusive hedge fund or
private equity fund or other fancy for the rich only investment vehicles are
out there, and feel hot that day yeah they get discounts because they have
heft .in theory by being inside of an investment bank the PWM or Private [man lifts weights]
Wealth manager has access to valuable research or discounted pricing on fees
in whatever funds might be appropriate for the client and to all of the other
resources offered by the bank .well how's the economy looking there? well how's
your cough there mr. client? we have a nice estate and will planning department [man coughs]
down the hall here if you really are feeling sick. want to donate some money?
well we can show you a tax efficient way to do that. you know you get all kinds of
favors ,like that. that stuff tons of services the wealthy need to you know to [fancy building shown]
stay wealthy. on a day to day basis you are a fork in the road .stock and bond
research goes through you. you add your own
spin to it like well I agree with the analyst here I disagree with the analyst [man speaks over folder]
there, and then you disseminate that research to your clients. and for that
little ad of salt and pepper to the stone soup of Finance well you get to
earn a modest salary maybe 50 to 80 grand depending on where you live but
then annual bonuses that can be in the millions based on how big and lucrative [definitions on screen]
your clients are. bottom line if you're reasonably good at understanding the
concept of managing money, and figuring out who's good so you get your clients
to invest with them, but you yourself are not good enough to be an actual
portfolio slash money manager, and you know how to butt kiss with the best of [man uses throat spray]
them well maybe this is a gig for you.
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