Intern salary advice

Hello everyone

I am a candidate for intern position at a major asset manager (AUM peer for Invesco) equities trading desk. The position requires some technical skills (think SQL, Python, Bloomberg, a bit of ML here and there, Stats) and obviously literacy in financial markets. Now, I am a match on both fronts, and I wonder what salary I should push for with the HR. It was initially said that I should expect anywhere between 10 and 15k HK$/mo (US$1.2-2k), but that seems way too low. I was making as much in a significantly less competitive position last summer and expected an internship at a big fund with lots of candidates to pay proportionally. Moreover, most of the salary will be subsidized.

Now, I'm not picky, and I will value experience over pay anyway, it's just the expectation mismatch that bothers me greatly: a summer analyst at IB would be making quadruple of what I will while sharing similar theoretical knowledge and having lower required technical expertise. I understand that asking for as much would be unfeasible, so my question is what number I could reasonably push for and maybe a little explanation from your side about the mismatch of pays.


Edit: I'd appreciate any input on the HK intern / summer analyst salaries in AM you know

 

Based on the Wall Street Oasis data, intern salaries in asset management can vary widely, but they generally don't match the compensation levels of investment banking roles. Here’s what you need to know:

  1. Industry Standards: Internships in asset management, especially at major firms, typically offer lower salaries compared to investment banking. This is partly due to the different revenue models and bonus structures between asset management and investment banking.

  2. Technical Skills and Compensation: While technical skills like SQL, Python, and machine learning are highly valued, they do not necessarily translate to higher intern compensation in asset management. The focus in asset management is often more on long-term asset growth and management, rather than the high-volume transactions seen in investment banking which justify higher pay scales.

  3. Negotiation Strategy: Given the initial offer of 10-15k HK$/mo, pushing for the higher end of this range or slightly above might be reasonable. Highlighting your technical skills, previous experience, and the competitive nature of the position can support your case for a higher salary. However, it’s important to remain realistic about the typical pay scales within the asset management industry.

  4. Experience vs. Compensation: As you mentioned, valuing experience over pay is crucial, especially at the intern level. Gaining hands-on experience at a reputable asset management firm can significantly enhance your resume and future job prospects, potentially leading to higher compensation in the long run.

  5. Market Comparisons: Interns in investment banking do tend to earn more, often because of the deal-driven, high-pressure environment that directly impacts the firm's revenue significantly. In contrast, asset management roles, while also stressful and demanding, do not usually offer the same level of direct revenue generation from individual deals.

In conclusion, aiming for a modest increase while focusing on the professional experience and growth opportunities the internship offers might be a more fruitful approach.

Sources: What's a good salary for internship as an analyst in an asset management firm, Programming/Technical Skills for Finance: SQL and Python, I want to intern at BW or P72, S&T interns: 3 things that got me hired, Programming/Technical Skills for Finance: SQL and Python

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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