Realistic Comp?

A head-hunter recently reached out to me about an Investment Analyst role within the Income Research team (infrastructure coverage) in one of the larger AM funds. 

He tells me that the base is "up to £100k" and the bonus is "minimum of 100%, with potential up to 250%)". This role is based in the UK, but NOT in London. 

Is it just me or is this excessively high? Is he pulling my leg here or is that bonus realistic?

For background, I work in Infra / Energy Private Equity and this is my first encounter with Public Equities so I really don't know much about the comp, but given that I am only at the Junior Associate level and not even in the right sector, I feel like this isn't right?

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Comments (18)

Apr 22, 2021 - 3:52am

I am not sure, the company is reputable and the location is legit, but yeah the salary seems too high, especially given my background is PE not public equities... 

Not really sure what an "actual Analyst" is opposed to any other Analyst? Here is the JD, let me know what you think? 

Job Title

Investment Analyst

Department

Multi Asset

Overview of Department

Our Investment Teams invest money on behalf of our clients, deciding which companies, stockmarkets and other asset classes to invest in. Financial markets will move up and down over short periods in ways that we cannot control or predict but, by analysing and understanding the key fundamental drivers behind this range of potential investments, we use our experience and judgement to select sound investments capable of producing superior long-term returns for our clients. We are also very mindful that our clients have entrusted us to look after their money so, in addition to delivering good long-term investment returns, we also strive to sustain excellent client service by communicating regularly with them. Our teams are set up to deal with different areas of the world and different types of investments. The teams are deliberately small to foster a collegiate and personal working environment that allows for discussion and debate.
 

Purpose of Role

This analyst role is to work within the Income Research team and provide analysis of listed infrastructure for our Multi-Asset Strategies. The role will have a particular focus on the infrastructure portfolio of the Multi-Asset Income Strategy.

This position has been deemed a Certified role within the FCA's Senior Manager and Certification Regime. As a result occupants details will be displayed on the FCA register and both initial and annual fitness and propriety assessments must be completed.

Responsibilities

  • Undertake asset class research of infrastructure including thematic and sectoral level analysis
  • Conduct individual stock level research of global listed infrastructure names.
  • Contribute to the maintenance of our infrastructure model ie which holdings we like with weights
  • Contribute to asset allocation discussions
  • Experience
  • At least 3 years' general experience in analysing equities
  • Knowledge and experience of infrastructure would be advantageous but not essential

The candidate should have a curious mind and enjoy being challenged in their views and working in a team environment.

Apr 22, 2021 - 3:58am

Yeahh the role seems like Infra Research. When I said "actual Analyst" what I meant was an Analyst because in AM an Analyst is above an Associate. You stated your title will be a 3rd year Associate right that's why that salary seemed a bit high for that title if that makes sense? I mean if it's legit anyways take it as I see nothing wrong with the job description given you want to work in the Infra sector.

Apr 22, 2021 - 7:49am

Technically 5, but its 2.5 years in middle office role, 2.5 years in front office Infra / Energy Private Equity. I have an accounting qual from my MO days but no CFA.

I'm in a Japanese fund so they don't use the standard An1 / An2 / An3 / Ass 1 hierarchy. Instead I'm just "senior investment analyst" which is broadly equivalent to Associate 1 in a US PE fund

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Apr 22, 2021 - 4:07pm

Reading the below, I will chip in that Baillie Gifford have had incredible returns and I would imagine is a great place to work. 

5 years of experience with 2.5 years in front office, that is broadly equivalent to Asso 1 in a US PE fund.

I guess BG probably would lump you in with a mid level analyst position (3-6 years of experience) where the total comp of £200-350k is on the higher end, but not that high (particularly by year 5/6 out of university), and BG for sure can afford to pay it. If I had to guess year 1 may be at the lower end of that range, but could accelerate reasonably quickly over time if you do well. AM can pay very well for good performers at good places.

Sounds like a great opportunity, if you don't mind living in Edinburgh

Apr 22, 2021 - 11:23am

The only outside of London fund that would pay that kind of money that I could think of right now for essentially an entry-level analyst position is Baillie Gifford (Edinburgh). Just checked their website and indeed they have a posting for this specific role. It's a HIGHLY respected place. If I were you OP, I wouldn't even hesitate to at least interview. Comp is in line with what you ought to expect and I believe if you're good it will accelerate pretty fast from your first few years on. Culture probably better than most PE funds. From what I hear they're more progressive than the average mutual fund so "career security" in the long term is probably less (but still?) an issue.

I suggest you check their employee linkedin profiles in investment research and it will give you a good idea of the calibre of individuals working there.

Apr 22, 2021 - 11:48am

Thank you very much for this! Very helpful response! (and you are correct about the firm). I will go for the interview and see what happens. 

I did have a quick Linkedin stalk, the odd thing is that it appears to mostly be people from top uni's (pretty much exclusively oxbridge) but with non finance / economics related degrees (things like History). I guess They probably want someone who can pull together a decent report. 

Apr 22, 2021 - 12:33pm

Yes, afaik it's a very "white shoe" type of firm. You'd expect to see people with humanities degrees who can obviously do the math, but are more interested in "intellectual pursuits". I'm personally from a very technical/STEM background so I find that assumption to be a bit ridiculous, but frankly, it's a class thing more than anything else. My aprents didn't have the means to leave me with a degree that makes me good at pondering :) Good luck! 

Apr 22, 2021 - 5:46pm

Yeah you are maybe right, thanks for sharing the link.

I did actually look on glassdoor before hence why i ended up coming here to confirm as I felt like the headhunter was pulling my leg a bit... But on the other had BD have had some record years so maybe that could be reflected, idk

Apr 22, 2021 - 5:58pm

definitely let us know how it goes. I just remembered I know someone that works in that office, but a manager in client services.

Apr 22, 2021 - 9:38pm

While the posted job's comp seems high, since you're at a Japanese fund chances are you're being underpaid compared to the market. Many Japanese firms (with exceptions of course) are notorious for underpaying their staff. Just food for thought, it's a hot job market and your next role is likely to be a step up in pay regardless of where you land. 

Good luck w/ the process! 

Apr 23, 2021 - 11:24am

I echo this, granted I was arguably slightly more senior and recruiting for London funds only and it was a few years back, but the all-in comp was very similar to what you described at the funds I got to that stage with. I'm sure smaller, less academic (read: snobby) places may pay less, but for entry level analyst 250-300k sounds about right.

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