Professional Investment Manager

Based on our research, we were unable to find a universal definition of a Professional Investment Manager/Money Manager. In addition, it does not appear that the U.S. Securities and Exchange Commission has created a definition. Therefore, here is what we consider the characteristics of a Professional Investment Manager/Money Manager to be:

  • A professional investment manager does not sell products or earn commissions.
  • A professional investment manager is a specialist, much like a brain surgeon, who does not earn fees by doing financial planning, giving tax advice, etc.
  • A professional investment manager provides for the continuous monitoring and management of all investable accounts. A professional investment manager will also send quarterly performance reports on a time and size weighted basis, along with appropriate benchmarks of excellence for comparison purposes.
  • The investment management firm is GIPS compliant and examined by an independent auditor.
  • The investment management firm maintains lifetime historical performance records by risk category for all the accounts they have managed.

Past performance is no guarantee of future results.  All investing involves risk, including the potential for loss of principal.  There is no guarantee that any investment strategy will be successful.