Financial Services, Front Office 2012 Salary Guide

Financial Services, Front Office 2012 Salary Guide

Asset Management

Permanent

In 2011, asset management front office salaries remained relatively stable for the second year running as the markets struggled to recover. Consequently, hiring in the front office was kept to a minimum, with replacement and strategic hires more commonplace. Despite this, senior investment professionals with strong performance track records are still able to command premiums.

In addition, product developers (particularly those with Solvency II and UCITS IV experience), are in continued demand. Product specialist / client portfolio manager roles at all levels of seniority were more prevalent in the first half of 2011, a trend we are expecting to see continue throughout 2012. With the markets failing to stabilise over the last year, we have also observed increased demand for strategists and economists at all levels.

In line with this there is potential to see overall earnings increase in the coming compensation reviews for individuals with these specialist skill sets.

 

BASIC SALARIES (PER ANNUM)

Role Analyst / 0-2 years AVP / 2-5 years VP / 5-7 years Director / 7-10 years MD / 10+ years
Fund / Portfolio Manager £40k - £50k £50k - £65k £65k - £100k £100k - £130k £130k+
Client Portfolio Manager / Investment Specialist / Product Specialist £40k - £47k £47k - £65k £65k - £95k £95k - £110k £110k+
Research Analyst £35k - £45k £45k - £65k £65k - £95k £90k - £120k £120k+
Investment Analyst (Fund of Funds) £30k - £42k £42k - £60k £60k - £80k £75k - £110k £110k+
Investment Strategist / Economist £30k - £40k £40k - £55k £55k - £80k £80k - £120k £120k+
Trader / Dealer £35k - £40k £40k - £55k £55k - £80k £80k - £110k £110k+
Product Development £35k - £40k £40k - £55k £55k - £80k £80k - £110k £110k+
Sales / Business Development £28k - £35k £35k - £50k £50k - £80k £80k - £120k £120k+

 

Corporate Finance, M&A

Permanent

At the start of 2011 both investment banks and boutiques alike were looking to add headcount, particularly at the junior level. Many deals (albeit smaller in the main compared to the same quarter in 2010) were drawn up, requiring additional support at analyst and associate level.

As always there were specific mandates at varying levels to replace leavers, typically as a result of moves to private equity funds or corporates.

Towards the second half of 2011 hiring slowed dramatically due to continued eurozone issues and negative outlook in the US. IPOs and mergers were delayed or put on hold indefinitely. As a result, some banks implemented hiring freezes whilst waiting for market visibility to improve.

Boutique firms continued to look at candidates on an opportunistic basis to secure high quality, well trained bankers who may have been made redundant.

Hiring into private equity remained slow as funds struggled to raise cash for investments, meaning fewer deals and less requirement for extra people to work on transactions.

Due to increased regulation, sign-on bonuses and guarantees are not commonplace. In fact, in 2011 there were many examples of candidates who moved to top tier institutions on the same or lower salaries.

 

BASIC SALARIES (PER ANNUM)

Level: Analyst Associate VP Director *
1 £40k - £50k £70k - £80k £100k - £120k -
2 £45k - £55k £80k - £95k £110k - £130k £135k - £200k
3 £50k - £63k £90k - £100k £120k - £140k -

 

Hedge Funds

Permanent

Salaries in 2011 remained fairly consistent with 2010 levels; many funds did not perform as well as expected due to the eurozone crisis. Caps on basic earning potential continues to be a theme in the hedge fund space with an emphasis on bonuses linked to fund performance. Having said that, we have not observed any significant increases in

bonus levels, with high performing portfolio managers and top rated research analysts being the only real areas of growth.

There has been a significant shift in focus in emerging markets experience, with event driven and special situation strategies particularly popular.

Interestingly, despite turbulent times, 2011 saw more start-up hedge funds emerge than in 2010.

In 2012, demand for high calibre graduates with equity research experience in top tier investment banks, looking to make the move into the hedge fund world, is expected to continue.

 

BASIC SALARIES (PER ANNUM)

Role Analyst / 0-2 years AVP / 2-5 years VP / 5-7 years Director / 7-10 years MD / 10+ years
Fund / Portfolio Manager £35k - £40k £40k - £60k £60k - £80k £80k - £120k £120k+
Client Portfolio Manager / Investment Specialist / Product Specialist £35k - £42k £42k - £65k £65k - £75k £75k - £100k £100k - £130k
Equity Research Analyst £30k - £40k £40k - £60k £60k - £80k £80k - £110k £110k - £130k
Economist / Investment Strategist £28k - £37k £37k - £55k £55k - £70k £70k - £110k £110k - £150k
Portfolio Construction £32k - £41k £41k - £55k £55k - £70k £70k - £85k £85k - £100k
Trader £25k - £37k £37k - £50k £50k - £70k £70k - £90k £90k - £110k
Product Development £35k - £40k £40k - £55k £55k - £75k £75k - £100k £95k - £120k
Sales / Business Development £25k - £32k £32k - £50k £50k - £75k £70k - £100k £100k+

 

Private Banking

Permanent

There was consistent jobs growth for private banking throughout 2011, as private banks and wealth management firms shifted their focus to client service and value delivery. Boutiques and bespoke partnerships are challenging the dominance of established global firms. The impact of new regulations and growing client

expectations has necessitated a change in client service and investment methodologies. Banks and wealth managers now see Retail Distribution Review (RDR) compliance as a key requirement for job seekers. Professionals holding qualifications such as RDR Level

6 and above, including the PCIAM, are now considered particularly attractive candidates.

With growing global instability and uncertainty, wealth management continues to be a lucrative area. There is strong potential for significant growth as institutions of all sizes compete to win and retain assets.

 

BASIC SALARIES (PER ANNUM)

Role Analyst / 0-2 years AVP / 2-5 years VP / 5-7 years Director / 7-10 years MD / 10+ years
Private Banker £30k - £45k £45k - £75k £75k - £110k £100k - £150k £120k+
Fund / Portfolio Manager £35k - £40k £40k - £65k £65k - £85k £85k - £110k £110k - £130k
Investment Advisor / Consultant £30k - £42k £42k - £60k £60k - £80k £80k - £120k £120k+
Product Specialist £30k - £40k £40k - £65k £65k - £85k £85k - £100k £100k+
Research Analyst £30k - £42k £42k - £55k £55k - £70k £70k - £80k £80k - £100k
Investment Analyst (Fund of Funds) £30k - £42k £42k - £55k £50k - £65k £65k - £75k £75k - £90k
Investment Strategist / Economist £30k - £35k £35k - £45k £47k - £54k £55k - £65k £75k - £90k
Trader / Dealer £35k - £40k £40k - £48k £48k - £65k £65k - £90k £90k+
Sales / Business Development £35k - £42k £42k - £55k £60k - £75k £75k - £100k £100k+
Product Development £35k - £42k £42k - £55k £55k - £80k £80k - £100k £100k - £120k

 

Victoria Walmsley's picture
Operations Director
vwalmsley@morganmckinley.co.uk