Submitted by nsscadmin on
We conclude our walk through the categories of registration with a look at investment fund managers. As the name would suggest an investment fund managers manages a fund. It could be a mutual fund, exchange-traded fund (ETF), or some other kind of investment fund.
The manager is responsible for implementing a fund’s investment strategy and managing its portfolio activities. This can include analyzing financial statements, selection of assets, selection of stocks, plan implementation and ongoing monitoring of the fund’s investments.
Typically, an investor would have no real interaction with an investment fund manager. The manager instead interacts directly with investment dealers to try and sell them on their fund as a good investment for their clients.
If a fund manager doesn’t deal with investor themselves how do they get paid? Fund managers can be paid from a combination of base salaries, bonuses, fees as a percentage of the fund’s assets under management and as part of the fund’s Management expense ratio (MER). This is an annual management fee paid to the firm that is managing the fund.