What is the role of a Portfolio Manager?

• A. Managing client portfolios without registration
• B. Providing trading advice only
• C. Operating discretionary accounts with registration
• D. Advising clients about bond purchases

Answer: (C)

The role of a Portfolio Manager is primarily focused on operating discretionary accounts, which involves making investment decisions on behalf of clients based on their individual investment goals and risk tolerance. This responsibility requires proper registration, as it ensures that the portfolio manager adheres to regulatory standards and is qualified to manage other individuals' funds.

Managing discretionary accounts means that the portfolio manager has the authority to buy and sell assets without needing to get prior approval from the client for each transaction. This allows for timely decision-making that can be critical in the fast-paced financial markets. Clients typically expect portfolio managers to actively manage their investments, adjusting the portfolio as market conditions change to optimize returns.

While the other choices may involve aspects of finance and investment, they don't fully capture the comprehensive responsibilities and oversight that accompany the role of a registered portfolio manager. For example, managing client portfolios without registration is not compliant with regulatory frameworks. Providing trading advice alone does not encompass the full management of a portfolio. Lastly, advising on bond purchases is a more specific activity and does not reflect the broader role of managing an entire portfolio.