Published: 30 May, 2012
INVESTMENT managers professionally control various financial securities, such as shares, bonds and assets. Investment managers aim to help investors meet their specific investment goals so that they reach the maximum investment benefits.
Of course, similar to any tradesman or service, some investment managers are better than others. If you are looking to recruit an investment manager, you may want to consider the following points to determine how to find a good investment manager.
Set your own goals
Before you begin looking for an investment manager you need to consider your own investment goals. Ask yourself questions such as how much of a risk you are willing to take and how long you are prepared to tie your money up for. Until you have these fundamental questions answered in your own mind, you will not be able to find a financial manager who will fit the bill.
A sound proven track record
Before settling with an investment manager always do some preliminary research into the capabilities of the manager. The most efficient way to research a manager’s talents is to examine their track record.
Scrutinize how long a manager has stayed in their job. Do they work alone or as part of a company and team? Have they been producing goods in rising markets or in different cycles?
Analyse their past performances and, if it is poor, try to evaluate whether this has been due to the lack of personal competence by the manager or due to unusual fluctuations in the market. You should also consider whether underlying problems in a particular sector may have contributed.
As the nature of financial markets are unstable and volatile, it is advised not to use past performance as the deciding factor when choosing an investment manager. Visiting websites who carry out preliminary research on financial investors and fund managers is therefore highly recommended.
Age and experience versus youth and vitality
Similar to when you are choosing a painter and decorator or a gardener, when choosing an investment manager you are faced with the question of whether to opt for age and experience or youth and vitality. Experience is usually preferable over inexperience, although within the field of financial investments, young, enthusiastic and highly motivated managers are often dubbed as future stars.
Whilst there are pros and cons for either option, acquiring the ‘best of both worlds’ is the best solution. This means you need someone with the drive and enthusiasm afforded by youth combined with expert knowledge and experience developed through age.
This can be achieved by choosing a well-established investment management company. As well as having the benefit of years of experience these have a team of young, sprightly and ultra-enthusiastic financial managers.
If you are interested in making the most of your investments by looking into an EIA, then speak to investment management experts such as CSS Partners. CSS Partners benefits from being a well-established and credible investment management company, with the added advantage of a team comprising of youthful and talented spirit.