Portfolio Managers deal with the active management of funds that are invested. We at Sanderson Financial work alongside our clients to ensure your investments remain suitable for your needs and will aim to help you with your investment goals, however we are Financial Advisers, not Portfolio Managers ourselves.
Whether you own a small portfolio of assets and shares or a vast portfolio of funds and shares, you need to manage your portfolio correctly to increase its value and minimise risk. In fact, poor portfolio management is one of the main issues that many people face. Horror stories involving risky investment decisions, illegal strategies, or simple mismanagement are why clients should seek expert portfolio management advice before attempting to create and grow a portfolio of any size. Portfolio management is critical for anyone looking to establish long-term wealth and build up a robust, valuable inheritance for your loved ones. 
With that in mind, this article by Sanderson Financial goes over some key things that you will need to think about when setting up your portfolio, choosing a portfolio manager, and optimising your portfolio for maximum growth and minimum risk. We’ll also discuss why portfolio management is important, why you need a portfolio manager, and how portfolio management specialists like Sanderson Financial can support the growth of your portfolio and secure your assets for the future.
What is Portfolio Management?
Simply put, portfolio management is the process of maintaining, optimising, and growing a portfolio of assets. Assets could include things such as bonds, cash, shares, property, mutual funds, and other financial and physical assets of value. Although small portfolios are typically managed and maintained by the client themselves, larger portfolios or clients who want to grow their small portfolios typically work with experienced portfolio managers and asset managers. Portfolio managers are usually professionals in the finance industry, experienced investors, hedge funds, or teams of specialists that manage different aspects of a client’s larger portfolio. The main appeal of portfolio management is that a client can ‘hand off’ their portfolio of assets to experts who will manage and grow the value of their portfolio over time while minimising risk and ensuring that the portfolio does not depreciate. 
Why is Portfolio Management Important?
Portfolio management is vital for any clients looking to expand their portfolio, increase the value of their assets, or ensure that their portfolio is not at risk. In fact, many people find that, without professional portfolio management, their portfolios decrease in value or are impossible to maintain due to time constraints. As a result, portfolio management is a critical step for all clients to take, no matter how much they enjoy managing their own portfolio or how large their portfolio is. Working with a team of expert portfolio managers can enable clients to diversify their assets, minimise risk, and increase the overall value of their portfolio over time. 
Why Do You Need a Portfolio Manager?
As stated above, portfolio managers are vital for clients who own a portfolio of any size. However, portfolio managers are especially helpful for people with large, diverse portfolios that include many different types of assets. Clients with particularly large portfolios should contact a professional portfolio manager immediately as it could be close to impossible to properly manage a vast portfolio while running a business, working a job, or pursuing other hobbies. In short, if you own a portfolio that is especially large, particularly diverse, or time-consuming, you should definitely consider working with one or more portfolio managers. Clients looking to increase the value of their portfolio via investment strategies and complex asset diversification schemes should certainly work with a team of portfolio managers and financial specialists such as Sanderson Financial. We can help clients manage their portfolio, maintain the long-term value of their portfolio, avoid risk and legal issues, and ensure that your portfolio grows in value over time. 
How Can a Portfolio Manager Help You?
Portfolio managers, financial specialists, and investment advisers can support customers with a range of tasks. Here are just some of the ways that a portfolio manager can help you:
- Minimising investment risk
- Maximising portfolio value
- Diversifying your assets
- Maintaining portfolios over several years
- Optimising portfolios to minimise costs and avoid issues
- Remediate problems with specific assets in the portfolio
- Free up the client’s time
- Optimise the tax efficiency of the portfolio
Working with an established team of portfolio managers and financial experts can ensure that your portfolio of assets grows in value and ensures that you and your family will remain financially secure. 
What Are Some Common Risks Associated With Portfolio Management?
Despite portfolio managers being experienced professionals with decades of success behind them, no one should assume or expect their portfolio to magically increase in value. Sometimes, no matter what happens, portfolios can simply decrease in value and clients should always understand that their portfolio may not perform as well as they expected. However, working with experienced portfolio managers is always better than working with beginners or managing it yourself. Portfolios can decrease in value even if they are managed well but are far more likely to depreciate if they are mismanaged. Another potential risk is ‘overmanaging’ your portfolio. This is a common mistake with beginners and clients who are especially protective of their portfolio. By overmanaging your portfolio, you could be leaving money on the table and wasting time that could otherwise be spent gaining more assets and expanding your overall portfolio. Portfolio managers will typically implement a range of strategies to maintain and grow the value of your assets. Some potential portfolio growth strategies include the diversification of your assets, timing the market, and implementing best practices when managing a client’s assets. 
How Can Portfolio Management Specialists Grow Your Portfolio?
Portfolio management specialists can grow your portfolio and increase the value of your assets in many ways. Firstly, portfolio management specialists can make smart investment decisions, investing in shares that are likely to increase in value or shares that are extremely stable. Depending on your personal risk tolerance, investment advisers can also make speculative decisions and based on several different criteria, choose shares that are potentially very lucrative. However, these higher-risk decisions should make up a small part of your portfolio. To maintain your wealth over decades, your portfolio manager will likely stick to a low-risk, medium-reward strategy that provides consistent long-term gains with minimal risk. This is an especially effective strategy for clients with large portfolios; a small, consistent increase in value can still generate impressive returns. Furthermore, portfolio management specialists are professionals that are experienced in many different aspects of finance, property, investment strategy, and portfolio maintenance. Financial advisors are especially important and helpful if your portfolio includes a diverse range of assets such as property, bonds, shares, and other valuables. 
What Should You Avoid When Managing Your Portfolio?
Clients should always ensure that they are working with experienced, qualified professionals with a track record in portfolio management and finance. Although fully-fledged scammers are rare and usually easy to detect, many firms are simply overworked, underprepared, and inexperienced compared to expert financial advisors like Sanderson Financial. Always do your due diligence before trusting a portfolio manager; consider how many years of experience they have, whether they have a successful track record, and how well-known they are within the financial industry. If all the signs point towards the portfolio manager being experienced, trustworthy, and successful, you should consider working with them and closely monitoring their management tactics to ensure that your portfolio is being managed correctly and diligently. At Sanderson Financial, we’ll work with you and provide specialist advice regarding asset management, asset allocation, investment diversification, and portfolio growth strategies. We’ll also help you manage your portfolio, increase your wealth, and ensure that your financial longevity is secured. To learn more about our portfolio management services or to enquire about our investment services, schedule a consultation with one of our investment experts and portfolio management specialists today.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Approved by The Openwork Partnership on 03-06-25.