Professional fund managers operate within clearly defined parameters, apply risk management techniques and where appropriate apply specialist investment techniques. Their role is to construct a securities portfolio designed to achieve the fund’s specified investment objective.
Fund managers build a comprehensive picture of the economic landscape by examining new market trends, political developments, regional influences and factors affecting the economy at large or the growth of particular industries or markets. Armed with this overall economic picture, they select the mix of assets that they believe will deliver the best investment performance within the fund’s remit. Fund managers can also specialise in particular investment classes, regions, countries or sectors.