Portfolio Manager Salary
Job Description for Portfolio Manager
A portfolio manager is a financial professional responsible for investing money. The portfolio manager may be a client-based advisor who works with individuals and businesses to manage a group of investments and assets; they may also handle financial products such as mutual funds. Many portfolio managers work within larger financial institutions, processing analyses from their company's risk and investment research teams and acting upon this information. The portfolio manager may seek to meet individual clients' long-term financial goals; for businesses, he or she may seek out investments that recapitalize revenue in a way that mitigates tax burdens and builds capital.Read More...
A portfolio manager may also handle a specific bundle of investments. In these cases, investors buy into the specific mutual fund managed by the portfolio manager based upon its past performance. In these situations, the fund typically has a well-established strategy for risk, growth and the type of individual investments that it is built upon. The portfolio manager makes adjustments as needed that fit within the overall initial strategy of the fund to maintain or improve its performance in the marketplace.
To work as a portfolio manager, at least a bachelor's degree in business, finance or a related field is generally required. Portfolio managers also typically obtain certification as certified financial advisors (CFAs). This position requires experience in financial assets management and investment, and typically portfolio managers are internally promoted within capital funds or financial institutions from the ranks of analysts and assistant managers.
Portfolio Manager Tasks
- Communicate with clients and administrators about their accounts, securities markets and economic trends.
- Manage bond and equity portfolios to maximize investment returns commensurate with an acceptable level of risk.
- Consult with clients to develop investment objectives, provides advice and guidance to customers.
- Report on investment activity and performance.
Common Career Paths for Portfolio Manager
At the upper end, Portfolio Managers who move into a Chief Investment Officer role can end up with a hefty increase in pay. The average income for Chief Investment Officers is a much higher $184K per year. Becoming a Senior Portfolio Manager is, more often than not, the most common role that Portfolio Managers move into when they're ready for the next step in their career. The average salary for the position is $139K. Another frequent advance is for Portfolio Managers to assume an Investment Advisor role; in this role, workers often earn $69K.
Portfolio Manager Job Listings
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Popular Employer Salaries for Portfolio Manager
The Bank of New York Mellon Corporation (BNY Mellon), U.S. Bank, The Northern Trust Company, BB&T Corp., and Bank of America Corp. (BOFA) are top-notch employers for Portfolio Managers in this area. The Bank of New York Mellon Corporation (BNY Mellon) does shell out the biggest paychecks — the median in that office is $157K — but the company pay scale is greatly mixed, meaning that workers on the low end may earn only $107K while workers on the upper end may rake in up to $237K. Portfolio Managers can also look forward to large paychecks at Wells Fargo Bank ($134K), Blackrock, Inc. ($130K), and Citizens Financial Group, Inc. ($119K).
Also approaching the lower end are Wells Fargo & Co. at $63K, Fifth Third Bancorp at $66K, and Regions Bank at $85K.
Popular Skills for Portfolio Manager
Survey participants wield an impressively varied skill set on the job. Most notably, skills in Investment Management, Client Interaction, Financial Modeling, and Sales are correlated to pay that is above average, with boosts between 10 percent and 16 percent. Those listing Property Management as a skill should be prepared for drastically lower pay. Customer Service and Commercial Loans also typically command lower compensation. Those educated in Investment Management tend to be well versed in Financial Analysis.
Pay by Experience Level for Portfolio Manager
Median of all compensation (including tips, bonus, and overtime) by years of experience.
For many Portfolio Managers, experience and pay levels seem to be correlated; more years in the business generally lead to more money. Respondents with less than five years' experience take home $67K on average. In contrast, those who have been around for five to 10 years earn a noticeably higher average of $92K. Six-figure salaries surface after one to two decades on the job — experienced professionals in this group reap a six-figure median of $111K. Portfolio Managers who surpass 20 years on the job report pay that isn't as high as one would expect; the median compensation for this crowd sits around $130K.
Pay Difference by Location
Relative to Portfolio Managers in the rest of the country, Portfolio Managers to the east in New York, Washington, and Boston see salaries beyond the national average. Portfolio Managers' salaries are heavily influenced by location — Portfolio Managers in Grand Rapids bring in salaries that are 44 percent lower than the national average. Employers in Minneapolis and Charlotte also lean toward paying below-median salaries (29 percent lower and 27 percent lower, respectively).