Portfolio Manager: Earn a High Valued PfMP Certificate
The PfMP certification identifies advanced experience, skill, and performance necessary to manage and align a portfolio of projects and programs to realize organizational strategy and objectives. Portfolio manager manages the success of one or more portfolios, balance conflicting demands between programs and projects, and allocate support based on organizational priorities and capacity.
As portfolio manager continues to grow, and organizations adopt it to achieve strategic objectives, it becomes more critical to have individuals skilled in this area of practice. As employers demand portfolio managers who can help the organization’s strategic goals, PfMP certification holders will gain a distinct advantage in employment and promotional opportunities over their peers.
PfMP Certification: Educational Qualifications
A bachelor’s degree in a relevant field is an essential qualification for work as a portfolio manager. Many employers want master’s degrees, and most portfolio managers hold them, even if they are not necessary. According to survey data, 65% of portfolio managers in the United States held at least a master’s degree. Among financial managers, the median annual salary for those with a master’s was $110,000-$32,000 more than the comparable pay for those with a bachelor’s degree.
A variety of undergraduate subjects are considered good preparation for entry-level positions in this professional, including quantitative business disciplines such as accounting, finance, and economics. Other relevant fields include statistics, mathematics, engineering, and physics, all of which focus heavily on quantitative and analytical skills development.
Read: Obtaining the PMI PfMP Certification: A Good Career Decision
At the master’s level, an MBA in finance or another related field such as business administration or business is the standard among portfolio managers. A Master of Science degree in the area of investment is also a good option.
Portfolio Manager: Career Path
It is usual for a portfolio manager to start his or her career as a financial analyst working on stocks, bonds, or other securities for a firm in the securities industry.
Junior analyst positions are typically open to bachelor’s degree graduates. Many junior analysts return to school after many years of experience to get MBA degrees or other relevant master’s degrees before moving into senior analyst roles. An appropriate master’s degree may immediately change a new applicant for a senior analyst position.
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A senior financial analyst who serves on investments produces reports and recommendations on particular securities under the direction of a portfolio manager. Senior analysts often specialize in specific categories of protection, spending most of their time conducting new research and analysis, updating study according to new developments, communicating with industry contacts, and presenting proposals to management and clients. Senior analysts also supervise and direct the work of one or more junior analysts.
With excellent work performance and shown expertise, a senior financial analyst can become a portfolio manager. If the portfolio does well, the manager may graduate to more extensive portfolios with more money supporting management. A senior portfolio management position is usually the end of the career path. However, some people move into leadership positions in their firms or strike out on their own to start new firms.
PfMP Role Delineation
PMI leads Role Delineation Studies for each Certification every five to seven years. A third party, independent of PMI, conducts the study, which includes PMI volunteers from around the world. The individuals discuss the distinct roles associated with PfMP certification, and the tasks and responsibilities are expected to be completed within that role. In other words, Role Delineation is a job analysis. It also presents a blueprint for the exam and links the exam questions to the position.
The Portfolio Manager Role Delineation states that contestants for the PfMP Certification:
- Foster alignment of portfolio components like projects, programs, operations with the strategic objectives and priorities of the organization.
- In doing so, the Portfolio Manager sets a governance model and portfolio management plan to support efficient decision making.
- Perform constant analysis and monitoring of portfolio components to know issues, risks, and opportunities for improvement. Portfolio Managers attempt to balance and optimize the portfolio to achieve strategic portfolio objectives.
- Possess advanced business knowledge and specialized domain competencies to enable organizational agility and success.
A Day in the Life of a Portfolio Manager
Although a daily life a portfolio manager is diverse, one continually checks the status of the financial markets and stays on top of current events. A portfolio manager will meet daily with his or her analysts to discuss market developments and the trends of relevant current events.
A portfolio manager directs all of the jobs the investment fund or portfolio makes during the day by making final decisions on the securities included. He or she engages with analysts who have researched various securities and the institutions that issued them. Based on suggestions, the portfolio manager makes the final decision on what securities to buy or sell. Some asset management styles, such as growth portfolios or funds, have a higher security turnover than others, such as content management.
In addition to joining with the analysts on staff and monitoring the markets and popular events, a portfolio manager has many other responsibilities. Portfolio managers often appear with high-level investors and potential investors in person or over the phone. While they often only provide an overview of prevailing economic conditions, rising in the financial media provides publicity for the investment vehicles they manage as well as the firms they serve.
The Bottom Line
A day in the life of a portfolio manager is filled with difficulties, also offers a financial and intellectual reward. It starts early and often ends late, but in between lie many exciting challenges and opportunities. If you are extremely analytical and have a passion for the financial markets and the ever-changing world of contemporary events, a career as a portfolio manager may be for you.
