What does an investment manager do?

It’s not rare for new investors to feel a touch of uncertainty before meeting their investment manager for the first time. Will they speak in a language I understand? Will they care about my investments as much as I do? And most importantly: what does an investment manager do?

What is an investment manager?

An investment manager looks after clients’ investment portfolios, supported by a team of researchers and assistants. They’ll meet with clients, ask questions to get a deeper understanding of their financial situation and work on a distinct investment strategy to meet agreed objectives.

All in all, there’s a lot to think about when it comes to investment management. We spoke to five investment managers working at Charles Stanley to hear about their daily routine and how they work for clients to meet their financial goals.

What an Investment Manager does for you

1. Makes key investment decisions where it counts
Giles McKean, Investment Manager

“One of the most satisfying things about being an investment manager at Charles Stanley is that we can invest our clients’ money in the same way that we invest our own. For those not familiar with the industry, you would have thought that this would go without saying – but, in the real world, this is often not the case.

Charles Stanley is in the absolute sweet spot for investment management. We are large enough to have all the research teams, support, checking and monitoring that we need – but not so large that investment decisions are made by a distant committee in a ‘one-size-fits-all’ way.

This means that Charles Stanley’s investment managers have the freedom to make their own decisions in areas where we have the understanding and expertise to add value for clients – but we can also use our research teams’ selections in areas where they have a greater level of expertise and have undertaken a rigorous analysis.”

2. Truly understands your risk profile
Charlotte Lambeth, Investment Manager

“If you’re a new client, I will spend a fair bit of time discussing your risk profile with you. We’ll talk about your personal appetite for investment risk, where you are in your life and what your long-term financial objectives look like. You will have completed the BITA Risk Questionnaire and chatted through the answers, potentially being quizzed on any apparent inconsistencies. This is because it is so important that the foundations on which we build a portfolio are solid – so that when the tremors of stock market upheavals hit, we can be sure it has the best chance of withstanding them as expected.

We will then keep revisiting this at the regular reviews, to ensure that it remains appropriate. As life progresses, our ability to tolerate fluctuations in capital values or income can change – and we need to ensure we accurately reflect the current situation. That’s why we like to find out what has happened since we last checked in and ask about any upcoming plans that could change things in the future. We would always prefer to understand more rather than less about your financial circumstances, as this way we are in the best possible position to help guide you.”

3. Builds a portfolio that reflects your personal values
Emma Foden-Pattinson, Investment Manager

“Many clients feel it’s important that their investments align with their moral values, so we talk about the Environmental, Social and Governance (ESG) credentials of their portfolios. ESG integration looks at “how” a company goes about its business, rather than simply considering “what” it does.

Whilst having better ESG credentials does not necessarily mean that an investment will generate better returns, investors can take comfort from knowing that companies are being asked how they conduct their business, both today and into the future.

Over recent years, there has been a rise in providers that specialise in the provision of ESG data. By analysing and interrogating the data that these services provide, I can now provide real evidence that will reflect the ESG credentials of a portfolio. I believe this significantly enhances the service we provide to clients who want a specific ESG focus built into their portfolio.

At Charles Stanley, we have always considered any non-financial factors that could affect a company’s prospects. We’ll take into consideration a wide range of financial and non-financial factors to create a portfolio which delivers against your long-term objectives, while good relationships, knowledge and understanding are essential foundations.”

4. Helps families manage their estate
Louis Coke, Senior Investment Manager

“As well as day-to-day investment management, many of our clients need help with planning their wealth in a sustainable and tax-efficient manner. To do this, we first need to know where we’re starting from. That’s not just in the financial sense, although details will be helpful to know. Effective wealth planning starts with conversations (on the phone, via video call or around a table) taking a high-level, honest view of your current financial situation.

For wealth to last for more than a couple of generations, the family must understand and believe in the story of that wealth. We’ll discuss:

• Where did your family wealth come from?
• What were the risks taken?
• How long did it take to build up?
• What sacrifices were made so that this wealth could cascade down the generational line?

This is all to help clients and their families to understand their wealth and what it can do. By having these conversations and building relationships, I can help clients invest and manage their money in a way that supports their long-term interests.”

5. Uses research to inform your investment strategy
Edward Clark, Investment Manager

“As an investment manager, research is really important. We’re continuing to explore the demographic, socioeconomic and technological tailwinds that the biotech and healthcare sector enjoys. Through predominantly collective investments, we can ensure our clients can benefit from this growth while reducing risk in a volatile sector.

Biotech is no longer a world of geeks in white coats and greedy pharmaceutical companies. The UK should be very proud of our global position in biotech and of the fact, we have some of the best scientists and healthcare workers in the world. We are lucky as Britons – and as investors too!”

Want to see what your money can do? Explore our investment management services today and request a call back for more information.

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Please note: This article was released prior to SDR and thus the information may not be in line with the Anti-Greenwashing rule but contextually is appropriate for the time it was written.