Money Management

Definition The process of budgeting, saving, investing, spending or otherwise in overseeing the cash usage of an individual or group. The predominant use of the phrase in financial markets is that of an investment professional making investment decisions for large pools of funds, such as mutual funds or pension plans. The process of budgeting, saving, investing, spending or otherwise in overseeing the cash usage of an individual or group. The predominant use of the phrase in financial markets is that of an investment professional making investment decisions for large pools of funds, such as mutual funds or pension plans.

Portfolio Manager Portfolio managers will usually work for a money management firm or pension fund to select and manage investments which meet the goals of a group of investors. Many managers now work in specialized commodity funds or hedge funds. Portfolio managers have different styles ranging from a bargain-hunting approach (value investing) to a growth stock selection approach. This work requires patience, discipline and a strong understanding of financial markets and companies. Portfolio managers will usually work for a money management firm or pension fund to select and manage investments which meet the goals of a group of investors. Many managers now work in specialized commodity funds or hedge funds. Portfolio managers have different styles ranging from a bargain-hunting approach (value investing) to a growth stock selection approach. This work requires patience, discipline and a strong understanding of financial markets and companies.

Top Firms (2007) 1. State Street Global 1. State Street Global 2. Barclays Global 2. Barclays Global 3. Fidelity Investments 3. Fidelity Investments 4. Legg Mason 4. Legg Mason 5. Mellon Financial 5. Mellon Financial 6. Black Rock 6. Black Rock 7. AIG Global Investment 7. AIG Global Investment 8. Northern Trust Global 8. Northern Trust Global 9. Wellington Mgmt. 9. Wellington Mgmt. 10. Vanguard Group 10. Vanguard Group

Skills People skills: High People skills: High Sales skills: Medium Sales skills: Medium Communication skills: High Communication skills: High Analytical skills: High Analytical skills: High Ability to synthesize: High Ability to synthesize: High Creative ability: Medium Creative ability: Medium Initiative: Medium Initiative: Medium Work hours:55-75/week Work hours:55-75/week

Investments Opportunities Fixed income securities Fixed income securities mortgaged-backs mortgaged-backs corporate bonds corporate bonds municipal bonds municipal bonds agency securities agency securities asset-backed securities asset-backed securities Equities Equities small stocks small stocks large caps large caps emerging market stocks emerging market stocks

Tips Think About How You Are Going to Get Started Think About How You Are Going to Get Started Know that this is a career Know that this is a career It's Important to Have a Broad Understanding of Business It's Important to Have a Broad Understanding of Business Must be Able to Take Risk Must be Able to Take Risk Be comfortable handling others money Be comfortable handling others money