Portfolio Manager vs. Asset Manager: What Are the Differences?

Portfolio managers and asset managers are both responsible for overseeing and managing investments. However, there are some key differences between the two roles. If you’re interested in a career in investment management, it’s important to understand the responsibilities of each position and the skills required to be successful. In this article, we compare and contrast portfolio managers and asset managers, and we provide tips for those interested in pursuing a career in asset management.

What is a Portfolio Manager?

Portfolio Managers are investment professionals who make decisions about which securities to buy and sell in order to grow the value of an investment portfolio. They are responsible for researching and analyzing investment opportunities, making recommendations to clients or superiors, and executing trades. Portfolio Managers typically work for banks, hedge funds, or other financial institutions. They must have strong analytical and decision-making skills, as well as the ability to handle stress and work well under pressure.

What is an Asset Manager?

Asset Managers are responsible for developing and implementing investment strategies for their clients. They work with individuals, families, institutions and businesses to help them reach their financial goals. Asset Managers conduct research on various investments and make recommendations to their clients based on their findings. They also monitor their clients’ portfolios to ensure that they are performing as expected and make changes as needed. Asset Managers keep up with changes in the market and economic conditions to ensure that their clients’ portfolios are well-positioned for the future.

Portfolio Manager vs. Asset Manager

Here are the main differences between a portfolio manager and an asset manager.

Job Duties

Portfolio managers oversee the entire investment process for a particular group of assets. They decide which investments to make, then manage those investments once they’re made. Asset managers focus only on the part of the investment process that occurs after a purchase is made. They evaluate the performance of an asset or set of assets and develop strategies for improvement.

Job Requirements

Portfolio managers and asset managers typically need at least a bachelor’s degree in business, economics or another related field. However, some employers prefer candidates to have a master’s degree as well. Additionally, portfolio managers and asset managers must be licensed by the Financial Industry Regulatory Authority (FINRA). To obtain a license, candidates must pass an exam that tests their knowledge of investment products, regulations and ethical standards.

Work Environment

A portfolio manager typically works in an office setting, but they may also travel to meet with clients or attend conferences. They spend most of their time working on a computer and analyzing data. Asset managers usually work in an office environment as well, but they may also visit construction sites or other locations where the assets are located.

Both types of managers can work long hours during busy periods, such as when there’s a lot of trading going on. However, asset managers may have more irregular schedules because they often travel to different locations.

Skills

Both portfolio managers and asset managers use analytical skills to make investment decisions. They also need to have an understanding of financial concepts and be able to use software programs that allow them to track investments.

Portfolio managers tend to focus on a specific type of investment, such as stocks or bonds, while asset managers oversee a variety of investments for their clients. This can require asset managers to have more knowledge about different types of investments and how they perform in various market conditions.

Both portfolio managers and asset managers need to have strong communication skills. Portfolio managers often need to explain their investment decisions to their clients, while asset managers may need to give presentations to potential clients about the services they offer.

Salary

Portfolio managers can earn an average salary of $96,423 per year, while asset managers can earn an average salary of $86,405 per year. Both of these average salaries may vary depending on the size of the company at which you work, location of your job and the level of experience you have prior to pursuing either position.