Hi, I am soon to finish up my undergrad studies and am trying to choose a profession for myself. My interests tend to shift over time but currently I am strongly considering a career in Asset Management and had some questions about that field.
1) I am looking for an occupation with a decent work-life balance. I don't need to work 9-5 but I want to have time during evenings and weekends to enjoy life (family, movies, sports, exercise...) and don't only want to focus on my profession (although I am willing to work very very hard for the first 5-10 years). Is this possible in asset management? Can one become a portfolio manager in a mutual fund (I understand that HF's tend to have longer hours), for example, and work regular and normal hours? Are their any other asset management roles that you think would be a good fit for me?
2) What is the compensation like in asset management for your typical successful professional, who has a decent MBA? I am not looking to know the salary for the super successful financiers (which can be in the billions) nor for an unsuccessful uncommitted person, but rather, again, for a successful, hard working individual. I saw some figures in the 500,000 range (for mid-career), but also figures substantially higher and lower. What do you say?
Asset Management Salary And Lifestyle
People working towards a career in asset management or considering it are often in the dark about the pay and workload. They are aware that the compensation is good, but they are unaware of the salary of an asset manager. They know you have to work hard, but can you do the 9-5 or are the days long and hard? The answers vary, but there is a general trend that we can cover.
Asset Management Salary
Asset Manager salaries are a little tamer and less varied than a many other jobs in finance.
At bulge bracket investment banks, user @joshuagoodwin0" said:
I think at JPM starting is 70k first 2 years, 80k third, 90K 4th, this is in NYC
In other locations though it can be as much as 30% less, obviously the difference is purely numerical because the cost of living is lower.
And while user @Tulip" agreed on the salary and progression, they elaborated with:
You see your annual "raise" in your bonus increases, and your bonus will depend a ton on which group you get placed in.
At a traditional asset management firm you will make a little less in bonuses, but you will have much better hours.
Asset Management Lifestyle
Asset managers often make a little less than investment bankers, but they also work less.
User @urmomgostocollege" said:
Same base as banking, with 30% less bonus and at least 30% less hours worked.
Portfolio managers will make quite a bit more money. Even in small companies.
In the words of user @TheBig":
I'm not 100% sure as far as progression goes, but here's the rough idea of the salaries the PMs at the IMD firm I intern at make. $4B AUM, only 18 people in the firm.
CIO & President (2) = $3,500,000+
Senior PM (2) = $2,000,000+
PM (2) = $1,000,000+
As you can see, asset managers start off with a lower salary and a lower workload, but with hard work and a knack for it you can move up to the same astronomical numbers that highly successful investment bankers see.
Read More About Asset Management On WSO
- Asset Management: Portfolio Manager Career Path?
- Is Asset Management Underrated?
- What's A Good Salary For Internship As An Analyst In An Asset Management Firm
- Ranking The Top Asset Management Firms
Decided to Pursue a Wall Street Career? Learn How to Network like a Master.
Inside the WSO Finance networking guide, you'll get a comprehensive, all-inclusive roadmap for maximizing your networking efforts (and minimizing embarrassing blunders). This info-rich book is packed with 71 pages of detailed strategies to help you get the most of your networking, including cold emailing templates, questions to ask in interviews, and action steps for success in navigating the Wall Street networking process.