Source: Transparent MBA
Investment Management + Mutual & Hedge Funds
There are few industries as glamorized as investment management. TV shows and movies portray cutthroat competition, moral grey-zones, and the chance at fortune. While the salary for MBA graduates entering investment management positions can be quite high, these positions aren’t all about hot shot personalities and monetary success. Our 250,000+ data points at TransparentMBA revealed aspects of the industry that should be considered when thinking about a career in investment management.
Please note that this analysis includes both Investment Management and, more specifically, Mutual & Hedge Funds. Within this combination, investment management accounts for nearly 90% of MBA graduate jobs. Just as firms classified under Investment Management dominate the industry, there is a function for MBA graduates that holds majority. Many MBA graduate jobs in this sector fall within the “investment management” function – accounting for about ¾ of positions – with functions such as marketing being less popular. While industries such as this one can be dominated by particular functions, it’s worth noting that our data encompasses any number of functional areas within a given sector.
If you are interested in MBA graduate jobs in the investment management industry, chances are you always consider the return on your possible investments. Students who invest in an MBA degree for these positions can expect an average starting compensation of $246,648 (94th percentile). This consists of an average salary clocking in at $134,045 (94th percentile) plus additional compensation, such as an average signing bonus of $23,263 (88th percentile). To see compensation data for this industry and how it stacks up against other top industries, just sign up for free here and explore our intuitive dashboards, representing data from almost 4,000 top employers.
MBA graduates seeking employment at an investment or funds management firm should expect to work hard. The industry average hours worked per week is slightly above other sectors – 56 hours per week to be exact – but can be as much as 70 hours at firms such as Goldman Sachs. Interns can expect to work upwards of 64 hours per week. In contrast to the above-average hours spent in the office, low travel is a hallmark of these positions, with an average of 19% vs the 26% all-industry mark.
Internships are a great time for employees and companies to get to know each other, and sometimes they find out the fit isn’t right. Our data points from 4,000+ employers reveal that the number of internships outnumber the number of full time positions by almost 18%.
Want to increase your chances of getting hired to an investment management firm? Hedge fund manager Whitney Tilson says he doesn’t want a resume, he wants an idea. Sending an investment idea as opposed to a traditional resume may help you stand out among the large crowd. Once you score an interview ex- Goldman Sachs recruiter Mark Hatz offers the following interview tips: smile, be respectful, prepare an elevator pitch about why you are a great fit with the company, be concise in your answers, and let your personality shine. While technical skills are obviously important, he says that attitude and fit are crucial to recruit associates that will enjoy spending long hours together.
Getting along with your co-workers and finding a workplace friend may drastically improve your work experience, as satisfaction scores within the investment management industry are bleak at best. Overall happiness scores 5.5 out of 10, which is 18% below average. Additionally, culture scores averaged at 4.7, a whopping 30% below the average for all MBA graduates. Even so, there are some companies that received perfect marks for culture, such as The Vanguard Group. Our data also reveals another shocking revelation: the huge discrepancies that exist between the work experience for men and women.
The industry as a whole is largely male-dominated, accounting for up to 70% of all MBA graduate jobs in the field. However, the differences don’t end with just an imbalance in the gender ratio. Average total starting compensation for men is $259,838 while women receive an average starting compensation of $152,439. While male salaries are higher than those of their female counterparts, stark differences also lie in the additional compensation. For example, the average bonus for men is $76,000 though women reported receiving an average of $15,000. Satisfaction scores for women also tend to be lower than men’s. Male work happiness in the investment management industry averages at 5.5 of 10, but women in the same positions report a happiness score of just 3.3. Women also have more negative feelings about company culture, which garnered a measly 1 out of 10 rating in our database. These numbers don’t speak for everyone’s experience, but they do highlight room for improvement.
MBA graduates considering jobs in investment management or mutual & hedge funds have many companies to choose from. Investment and funds management firms place an emphasis on “fit”, so it is important to pursue opportunities with companies, positions, and locations that you believe in. To see a full list of popular employers and their satisfaction ratings, visit our Investment Management and Mutual & Hedge Funds dashboards.
Just as firms classified under Investment Management dominated the industry, there is a function for MBA graduates that holds majority. Many MBA graduate jobs in this sector fall within the “investment management” function – accounting for about ¾ of positions – with functions such as marketing being less popular.
Some popular positions for MBA graduates in this field include “Associates”, “Analysts”, and “Consultants”. Compensation for associates at JPMorgan & Chase can total to $243,000 and signing bonuses for research analysts at Fidelity can reach as high as $56,000. To see a full list of specific positions you may find in the industry, visit our Investment Management and Mutual & Hedge Funds dashboards.
Investment management has long interested MBA graduates, business owners, and the general population alike. When asked about the state of the industry, Tom Brown, global head of investment management at KPMG says it will look a lot different by 2030. The four “megatrends” he identified are: changing demographics, technology, resource shortages, and social behavior. Employment data has revealed that individuals don’t stay with one employer like they used to, so he predicts that individuals will be involved with more companies across many platforms. He also forecasts that investors will be more diverse, mobile, and global by 2030. All of these factors lead to evolving business structures and platforms of asset management firms in the coming years. Securing an MBA graduate job in this sector would give you a front row seat to the innovation to come.