A Portfolio Manager (PM) is a professional responsible for making investment decisions and carrying out investment activities on behalf of vested individuals or institutions. In investment banking, a PM is responsible for the book, the PNL, the performance, and the direction of the fund. They oversee the daily management of investment portfolios on behalf of individual or institutional clients, creating and managing an overall investment strategy that matches client needs, implementing that strategy by selecting an appropriate mix of securities and other investment products, and managing that mix on a continual basis. A PM usually oversees a team of senior financial analysts who produce analytical reports and recommendations to inform strategy formation. They work with a team of analysts and researchers and are responsible for establishing an investment strategy, selecting appropriate investments, and allocating each investment properly towards an investment fund or asset management vehicle. The PM makes final trading decisions, manages risk and the entire portfolio, and oversees back/middle office operations such as compliance, IT, and accounting. The PM is evaluated based on the book, the PNL, the performance, and the direction of the fund. The PM earns money based on his/her performance (Profit & Loss Statement – P&L or “PnL”) in the year, which means that it’s possible to earn a bonus of $0, or a bonus in the millions of dollars… or anything in between.