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
- Consult with clients to develop investment objectives, provides advice and guidance to customers.
- Report on investment activity and performance.
- 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.
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. Going from Portfolio Manager to Senior Portfolio Manager is the transition that occurs most often in this field, where the paychecks are $141K. Many others choose to work as Investment Advisors, where pay is typically $69K.
Portfolio Manager Job Listings
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Popular Employer Salaries for Portfolio Manager
The Bank of New York Mellon Corporation (BNY Mellon), Bank of America Corp. (BOFA), BB&T Corp., U.S. Bank, and US Trust Company are top-notch employers for Portfolio Managers in this area. Employees of The Bank of New York Mellon Corporation (BNY Mellon) can expect to make the most, with the company offering a median salary of $157K; however, pay is widely dispersed from bottom to top, ranging from $107K to $237K. Soaring salaries can also be found at Blackrock, Inc., Wells Fargo Bank, and Citizens Financial Group, Inc., where earnings of $155K, $134K, or $117K are standard for Portfolio Managers.
Fifth Third Bancorp, The Northern Trust Company, and Regions Bank also scrape the bottom of the pay scale, with median earnings hovering around $67K, $84K, and $85K.
Popular Skills for Portfolio Manager
Survey respondents exploit a significant toolbox of skills in their work. Most notably, skills in Investment Management, Financial Modeling, Sales, and Risk Management / Risk Control are correlated to pay that is above average, with boosts between 9 percent and 14 percent. Those listing Property Management as a skill should be prepared for drastically lower pay. Operations Management and Customer Service also typically command lower compensation. For most people, competency in Investment Management indicates knowledge of Financial Analysis.
Pay by Experience Level for Portfolio Manager
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Experience seems to be a major factor in determining the incomes of Portfolio Managers. Respondents with less than five years' experience take home $68K on average. In contrast, those who have been around for five to 10 years earn a noticeably higher average of $95K. Professionals who spend a good 10 to 20 years in the workforce haul in an average of $111K. Old hands who claim more than two decades on the job enjoy average earnings of $133K.
Pay Difference by Location
For those looking to make money, Portfolio Managers in New York enjoy an exceptional pay rate, 36 percent above the national average. Portfolio Managers can also look forward to large paychecks in cities like San Francisco (+29 percent), Washington (+28 percent), Boston (+23 percent), and Los Angeles (+22 percent). Portfolio Managers in Grand Rapids make 45 percent less than the national average, proving that location is a major factor in pay. Minneapolis and Charlotte are a couple other places where companies are known to pay below the median — salaries are 30 percent lower and 28 percent lower, respectively.
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Key Stats for Portfolio Manager
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