The goal of a professional Investment Manager is to direct the investment of various securities and assets in order to meet the specific, personalized financial needs of every client. By analyzing the market conditions, risk tolerance, life stage, and unique priorities of each and every investor, an Investment Manager assembles a customized strategy personalized to meet an individual’s short and long term investment objectives.

Put simply, rather than implement a one-size-fits-all approach, an Investment Manager in Arlington Heights adjusts the allocation of assets and financial securities in order to shape each client’s portfolio. For example, a client looking for growth, who has a higher risk tolerance, would probably invest more heavily in equity positions such as equity mutual funds and stocks, whereas a client with lower risk tolerance and/or an emphasis on earning income may build a portfolio with a greater proportion of fixed income instruments.

In addition to the initial development and implementation of a financial strategy, an Investment Manager is responsible for continuously analyzing and adjusting an investment strategy over time. For instance, as a client reaches retirement, their financial needs will likely need to be adjusted towards a more income-based, conservative portfolio so as to protect their assets from market volatility. Furthermore, if one sector of an investment portfolio outperforms the others, the desired proportion of assets assigned towards that sector will be inflated, distorting the intended goals of that individual’s portfolio. In such cases, the role of an Investment Manager is to regularly redistribute, or “rebalance”, assets within a given portfolio to ensure the client’s financial objectives are maintained.

While each client’s personal and financial situation largely dictates the design of an investment strategy, it is important to recognize that the approach and overall assessment of market conditions will undoubtedly differ from one Investment Manager to another. As such, it is crucial to consider whether or not a given Investment Manager is the right match for your needs. For example, an Investment Manager’s definition of a “conservative” or “aggressive” portfolio is subject to interpretation. 

In order to be effective, Investment Management must account for a multitude of variables, including risk tolerance, income needs, diversification, the distribution of financial instruments, available resources, and market conditions. In sum, the primary services of an Investment Manager are to preserve a client’s objectives by assigning resources into the desired proportion of financial instruments, reallocating assets on market trends and economic conditions, diversifying investments, researching potential investments, hedging risk and monitoring fund/stock performance, and keeping clients informed about portfolio performance and potential investment opportunities. For more information on investment management, go here.