a day in the life of a portfolio manager at a boutique asset management firm

A Day in the Life of a Portfolio Manager at a Successful Investment Boutique

SunGard’s Asset Arena 360 Presents:

A Day in the Life of a Portfolio Manager at a Successful Boutique

Asset Management Firm

www.sungard.com/AssetArena360

I start my day by catching up on news and developments in the market environments, from global economic news to equity-related news such as which companies reported earnings. I then scan my email to look for any urgent messages from other time zones before heading to the early morning investment team briefing where we discuss which stocks are worth buying.

8.00AM: I start my day by catching up on news and developments in the market environments, from global economic news to equity-related news such as which companies reported earnings. I then scan my email to look for any urgent messages from other time zones before heading to the early morning investment team briefing where we discuss which stocks are worth buying


9.00AM: We take a bottom up stock picking approach and do an incredible amount of fundamental research into the companies we invest in. One of the stock ideas presented at last week’s meeting was interesting. I have since had a conference call with the company’s directors to find out more and then simulated the trade inside Asset Arena 360 to assess its impact on my cash position, risk exposures and the weighting/balancing of my portfolio. While the trade initially meets my criteria, the pre-trade compliance check flags that a portfolio-specific restraint would be breached by the size of the trade. I reduce the size of the order and execute the trade via Asset Arena 360. The Trade Blotter confirms the order as acknowledged and then as fulfilled.

We take a bottom up stock picking approach and do an incredible amount of fundamental research into the companies we invest in. One of the stock ideas presented at last week’s meeting was interesting. I have since had a conference call with the company’s directors to find out more and then simulated the trade inside Asset Arena 360 to assess its impact on my cash position, risk exposures and the weighting/balancing of my portfolio. While the trade initially meets my criteria, the pre-trade compliance check flags that a portfolio-specific restraint would be breached by the size of the trade. I reduce the size of the order and execute the trade via Asset Arena 360. The Trade Blotter confirms the order as acknowledged and then as fulfilled.


I prepare presentations for meetings with clients later this week. Some are portfolio updates with clients, some are introductions to select specific growth or sector-focused investment strategies with prospects and consultants, and one is a final presentation to the CIO of a large family office. I review my analysis of the economic fundamentals and confirm the best yield curve strategy. I use Asset Arena 360’s reporting templates to quickly produce a PDF report that is specific to the family office’s investment objectives.

10.00AM: I prepare presentations for meetings with clients later this week. Some are portfolio updates with clients, some are introductions to select specific growth or sector-focused investment strategies with prospects and consultants, and one is a final presentation to the CIO of a large family office. I review my analysis of the economic fundamentals and confirm the best yield curve strategy. I use Asset Arena 360’s reporting templates to quickly produce a PDF report that is specific to the family office’s investment objectives.


11.00AM: I review a quarterly portfolio analysis with the assistant portfolio manager. Her analysis of the portfolio in Asset Arena 360 reveals a small change in the portfolio towards a more aggressive risk/return profile. We identify the sources of excess return with Asset Arena 360’s performance module and discuss the implications. We are comfortable that the incremental returns above the market are due to our asset allocation strategy rather than to market exposure. I make a note of this in preparation for a meeting I have with a major investor in this portfolio later this week. I also run VaR stats in Asset Arena 360 as I know the client likes to know these figures.

Performance attribution


12.00PM: Our US-based business development manager is visiting. We go out for lunch and discuss the pension plan investment trends he has been observing in the USA. A major North American retirement plan is considering making a placement but the investment would require the observance of approximately 40 different investment compliance policies. We explore investment approaches that may suit those requirements and head back to the office to discuss with the compliance officer how our existing compliance procedures could be enhanced to reflect the pension plan’s policies. She confirms that we could immediately develop, implement and track these compliance policies inside Asset Arena 360’s OMS and portfolio management module. The business development manager emails the pension plan prospect to update them on this and schedule a call to discuss next steps.


1.00PM: I ask the client services team to produce a new fund fact sheet for my Japan Equity Fund, including formation about performance analysis since inception, compliance checks, broker figures. The report template is already stored in Asset Arena 360, so the report lands on my desk minutes later.


1.30PM: I review one of our existing global large cap equities strategies. With slower growth in China, I want to reduce our exposure to commodities and manufacturing firms, but increase investments in a select few diversified food-related consumer goods stocks. People will always need to eat, and with a long-term trend for increasing food prices and an expectation of seasonal increase in demand, now is a good time to make some smart investments. I use Asset Arena 360 to get the overall asset allocation right while getting more exposure to this sector and minimizing the impact of volatility. I don’t have time to make a final decision on this now. I save the scenario for later and set myself a reminder to revisit within 24 hours.


2.00PM: I participate in a conference call with a new client who has awarded us a global equity mandate to discuss the transition of the assets. Our internal transition team leading the onboarding process requires my input on the investment guidelines the client has proposed, and we discuss the implications of the customization to our standard guidelines. Back at my desk, I log into Asset Arena 360 to see how we could manage the implementation of the client’s guidelines. I create a simulated portfolio with new additions, terminations and shifting manager weights. I also factor in portfolio management issues such as cash flow management, tax considerations, operational issues and regulatory constraints.


Time to prepare for close of market. I check in Asset Arena 360 that my investment decisions were properly executed and matched. Perfect, all done. Now I just need to manage my currency risk and put an FX hedge in place. I compute my FX exposure and prepare FX forwards in several currencies and generate orders in Asset Arena 360, all in less than two minutes before markets close. Finally, I hedge my systematic risk and beta exposure with Index futures in line with the strategy and requirements agreed with clients. Then it’s time to make my way to an external meeting.

3.00PM: Time to prepare for close of market. I check in Asset Arena 360 that my investment decisions were properly executed and matched. Perfect, all done. Now I just need to manage my currency risk and put an FX hedge in place. I compute my FX exposure and prepare FX forwards in several currencies and generate orders in Asset Arena 360, all in less than two minutes before markets close. Finally, I hedge my systematic risk and beta exposure with Index futures in line with the strategy and requirements agreed with clients. Then it’s time to make my way to an external meeting.


4.00PM: I join a meeting with an investment consultant who is visiting to finalize their due diligence on one of our European equity strategies before assigning a rating. I discuss current portfolio positioning and my outlook for the market, and explain how we use SunGard’s quantitative asset management tools to optimize the portfolio allocation and monitor risk for this strategy.


5.30PM: Coming back to my office, I catch up on email traffic and respond to a few inquiries from relationship managers about recent performance trends in one of my strategies. I also review the report package that the junior portfolio manager has put together in preparation for a client review I am doing tomorrow.


6.30PM: Before leaving the office, I check in with our US business development manager. He has already heard back from his contact at the pension plan. We briefly discuss the need to plan a US West Coast trip to see this and other prospects for my investment strategy. Then it’s time to head out.


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a day in the life of a portfolio manager at a boutique asset management firm

Economy & Finance

portfolio updates

portfoliospecific restraint

trade blotter

assistant portfolio

quarterly portfolio

portfolio management

investment approaches

asset allocation strategy