London - Long-only AM equity analyst compensation.
Hi everyone,
I've been reading around and London compensation on the long-only side seems somewhat difficult to find. I saw in a thread below that starting salary seems to be about 60k and 30% bonus. It seems low compared to other countries. Does any know what the salary and bonus progression is like?
For what it's worth, I'm an equity analyst at a long-only fund in another commonwealth country with ~3 years experience who is seeking to move to London once Covid settles down etc. Just curious to know if anyone has any ideas what my salary and progression would be like. Seems like I may end up taking a pay cut to move to London which seems unexpected.
Thanks.
Bump
Anyone?
Bailie Gifford pay 30k or something like that
They're in Edinburgh though... stuff there is cheaper + they get unlimited days off
In London, T. Rowe Price pay 50k + ~30% as bonus for first years... Fidelity similar
Baille Gifford definitely more than 30k. 7-8 yrs ago these guys were paying £38k salary for a new grad that was in line with big London LOs at the time (with banks paying 42-45k then). I would guess they moved up in line with the industry over time.
As an aside, BG is probably a great place to be given how amazing their performance (and asset growth driven by inflows + performance) has been. First few years comp is probably in line with market but I would guess that if you have been there for 5+ years and are seen as a material contributor to the recent success, you will be getting paid well.
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This survey doesn't specifically have a section for equity funds, but I think the pay progression on the buyside in general might give you some vague indication of what compensation levels are: https://www.pageexecutive.com/sites/pageexecutive.com/files/banking_ass…
Thanks. Appreciate it.
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With your experience and assuming you're a fully capable analyst (as in have own coverage, make fully baked recommendations) and not an ER associate (i.e. research support person for analysts and PMs), I'd probably expect to still earn low 6 figs + ~100% bonus at the bigger funds (e.g. FMR/FIL/T. Rowe etc.). This would be assuming you also have an MBA or at least a CFA. If you're not there yet, adjust your expectations downward.
From what OP said I took that to mean they have 3 years experience in AM post undergraduate degree (so would be an ER Associate/ just moving into junior analyst role).
If that is the case, ie. for someone now in their fourth year of AM post undergrad, I think that low 6 figs + 100% bonus is too high in GBP (definitely too high on salary - may make it in total comp for a good performer at a good firm) but is probably not too far off in USD. Would think £65-85k base + 30%-150%+ bonus/ stock/ deferred bonus (some combination thereof), ie. huge variation in comp additional to salary depending on performance. Market maybe £100-200k total comp all in for a so-so to good performer.
Can be higher or lower than this for sure... there is a very wide range both between and within firms.
Comp can scale a lot from there, and should increase a lot and quickly IF you are good, they want to keep you, and you are at a good place. PMs at big AMs make millions if they are good.
Ah ok. I thought he meant analyst not associate. Different jobs and different level of responsibility. I have no insight on ERAs or their pay progression, just remember when I was starting out that's what post-MBA salaries looked like a couple years ago in London. I concluded London had it's allure but ultimately was a pretty poor deal - you basically get short handed twice - once with a paycut and then with the higher tax. Not to mention that your career/coverage is typically levered to European markets with a mostly poor outlook, which is the third, less obvious slap.
Yeah sorry if I wasn't clear on my current position. So I have ~3 years experience post uni. Because I'm from a smaller country with a very small finance sector, job titles and roles aren't as structured as a more developed market. My current title is "investment analyst" working directly for the portfolio manager covering global equities. Doing research, building DCFs etc, probably standard duties for someone with my role.
Industry standard for the 'Associate Analyst' programmes at the likes of Capital / Wellington / Henderson / T Rowe etc seems to be ~£60k and bonus potential capped at something like 25-50% of that. These are the programmes you get hired into with 1-2 years of sell side ER experience, then do them for 2 years and jump to another seat on the buy side as there's often limited scope for internal progression. Caveat - these figures are a few years old as it was 2017 when I was thinking about applying to some of these, but I can't imagine there's been rampant comp inflation in the past few years.
As a more senior analyst with direct coverage responsibilities comp will be a lot higher than that. And at a more 'boutique' place the comp structure could look very different and may be more explicitly linked to performance - you're more likely to be working for a specific PM there rather than being part of the internal equity research resource all the PMs can use (the Fido / T Rowe model).
Yes can confirm base is around £75-90k now depending on YoE for (internal pooled) research roles... bonus still capped as described
Do you know much about Ninety One in London?
Thanks for the answer. 75-90 seems like a bit of a jump from what was previously mentioned. Sounds promising. Is that for the large asset managers or is that standard across the industry even with smaller/boutique managers etc?
Bump. This thread is a few years old so wondering if anything has changed.
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Bump!
London LO (£100bn+AUM) (£3bn fund)
3 and half years experience
£67k £28k bonus. 2023 numbers.
I know I’m getting underpaid lol. Will leave at 5 years. Just building my knowledge base on my sector coverage
Thanks for the reply.
Are you underpaid with regard to bonus or base or both? What do you think market is for experience?
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