Clark Galvan
Investment fund management is a sought-after role in the finance industry, offering high salaries and performance bonuses. The average salary for an investment fund manager in the United States is $115,892 per year, but this varies depending on experience, location, and the firm's size and specialization. Salaries can range from $57,317 to $225,268, with top-level fund managers earning over $200,000. The highest-paying states for investment fund managers include New York, California, Alaska, Massachusetts, and Rhode Island.
| Characteristics | Values |
|---|---|
| Average Salary | $90,814 per year, ranging from $21,000 to $209,000 per year |
| Highest-Paying States | New York, District of Columbia, California, Texas |
| Lowest-Paying States | Florida, South Carolina, Montana |
| Highest-Paying Industries | Professional, Scientific, and Technical Services, Management of Companies and Enterprises |
| Lowest-Paying Industries | Public Administration, Accommodation and Food Services, Educational Services |
| Entry-Level Salary | $66,000 per year |
| Senior-Level Salary | Up to $225,268 per year |
| Average Hourly Rate | $55.72 per hour |
| Salary Range | $70,830 - $208,000 |
| Average Salary in 2024 | $115,892 per year |
| Average Salary in 2023 | $113,629 per year |
| Average Salary of Investment Managers | $179,601 per year |
What You'll Learn
Salary range for fund managers at large investment firms
Investment fund management is one of the most sought-after roles in finance, largely due to its high salary and challenging nature. The salary of an investment fund manager varies depending on several factors, including experience, location, and the size of the firm.
On average, an investment fund manager in the United States can expect to earn around $115,892 per year, with salaries typically ranging from $66,000 to $201,000. However, some sources place the average salary lower, at $90,814, with a range of $21,000 to $209,000, while others place it higher, at $179,601, ranging from $129,144 to $238,413. These discrepancies may be due to differences in methodology and the specific job roles or industries being examined.
The salary of an investment fund manager also varies depending on the state in which they are located. For example, the average salary for an investment fund manager in California is $99,199, while in Texas, it is $111,284. The highest-paying state is New York, where the average salary is $209,774.
In addition to their base salary, investment fund managers may also receive performance bonuses, which are usually paid at the end of the year and are based on factors such as their length of service, the number of clients they support, and the success of their clients' investments. These bonuses are typically calculated as a percentage of the money made for their clients and the firm.
The salary of an investment fund manager can also depend on the industry in which they work. For example, fund managers tend to earn higher salaries in industries such as professional services, scientific and technical services, and mining, while they earn lower salaries in industries like public administration, accommodation, and food services.
Furthermore, the salary of an investment fund manager can be influenced by their level of education and experience. An entry-level investment fund manager with under one year of experience can expect to earn around $169,746, while a senior-level investment fund manager with 8 or more years of experience can earn an average of $187,412.
Overall, the salary range for fund managers at large investment firms varies widely depending on a variety of factors, but it generally falls within the range of $66,000 to $238,413 per year.
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Factors determining fund managers' salaries
The salary of fund managers at large investment firms is determined by various factors, including experience, location, and performance.
Experience
Fund managers' salaries often increase as they gain more experience in the industry. Their initial salaries typically grow as they stay with a firm, take on more responsibilities, and develop their expertise in managing funds and investments.
Location
The geographical location of fund managers also impacts their salaries. Certain states or cities, such as New York, California, Texas, and Washington, tend to offer higher pay rates than others due to higher standards of living and the presence of prominent financial institutions.
Performance
Performance-based compensation is a significant component of fund managers' salaries. Their bonuses depend on factors such as their tenure, the number of clients they support, and the success of their clients' investments. These bonuses are usually calculated as a percentage of the money made for their clients and the firm. Additionally, fund managers' pay may be influenced by the performance of the specific team, division, or company within the fund management structure.
Education and Certifications
Fund managers' salaries can also be influenced by their level of education and relevant certifications. Obtaining a bachelor's or master's degree in finance, mathematics, or economics, as well as designations such as the Chartered Financial Analyst (CFA), can enhance their earning potential.
Industry and Specialization
The industry and specialization of the fund manager's firm can also impact their salary. Different institutions, such as those within large cities or specific industries like information, professional services, or oil and gas, may offer varied pay rates.
Other Benefits
In addition to their base salary and performance bonuses, fund managers may also receive non-monetary benefits, such as insurance, paid vacation, and other perks that add value to their overall compensation package.
While the average salary for fund managers at large investment firms varies across sources, it generally falls between $70,830 and $209,000 per year, with location and experience playing a significant role in determining their earnings.
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Highest-paying states for fund managers
The salary of fund managers at large investment firms varies depending on their experience, location, and the firm's geographical location. On average, fund managers in the US earn $115,892 per year, with the lowest-paid earning $66,000 and the highest-paid taking home $201,000.
The highest-paying states for fund managers in the US are:
- Alaska: $88,304 per year
- Massachusetts: $89,399 per year
- Rhode Island: $85,409 per year
- District of Columbia: $100,604 per year
- New York: $89,886 per year
- Nevada: $84,572 per year
The lowest-paying states for fund managers are South Carolina, Montana, and South Dakota.
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Highest-paying companies for fund managers
The salary of fund managers at large investment firms depends on their experience, location, and the firm's size, clientele, and specialization. While the average salary for fund managers in the US is $90,814 per year, it can range from $21,000 to $209,000 per year. Fund managers in certain states, such as New York, tend to earn higher salaries, and those working in specific industries, such as information, are paid more.
UBS
UBS is a Swiss multinational investment bank and financial services company. It is one of the largest banks in Europe and offers various services, including wealth management, asset management, and investment banking. UBS has a strong presence in the United States and operates in all major financial centers worldwide.
Northern Trust
Northern Trust is a global financial services company headquartered in Chicago, Illinois. It provides wealth management, asset servicing, and asset management services to corporations, institutions, and affluent individuals. Northern Trust has a long history, dating back to 1889, and is known for its expertise in asset servicing and custody services.
Goldman Sachs
Goldman Sachs is a leading global investment banking, securities, and investment management firm. It provides a wide range of financial services to corporations, governments, and individuals. Goldman Sachs is known for its strong presence in investment banking and has been involved in some of the largest and most notable transactions in the industry.
Credit Suisse
Credit Suisse is a Swiss multinational investment bank and financial services company. It provides private banking, investment banking, and asset management services to its clients. Credit Suisse has a global presence and is known for its expertise in wealth management and investment banking services.
RSM US
RSM US is a leading provider of audit, tax, and consulting services, focusing on the middle market. It is the fifth-largest accounting firm in the United States and has a strong presence in industries such as financial services, healthcare, and technology. RSM US offers a range of services, including risk advisory, transaction advisory, and management consulting.
Wealth Enhancement Group
Wealth Enhancement Group is a full-service financial firm providing comprehensive and customized financial planning and investment management services. They specialize in helping individuals and families manage their wealth and achieve their financial goals. The company has a team of advisors and professionals who offer personalized advice and solutions.
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Breakdown of fund managers' compensation packages
The compensation package of fund managers varies depending on their experience, location, and the type of fund they manage. Here is a breakdown of the typical components of a fund manager's compensation package:
Base Salary
Fund managers typically receive a base salary that can range from $66,000 to $209,000 per year. The median base salary for entry-level fund managers is $150,000 to $250,000, while senior fund managers can earn a base salary of $500,000 or more. The base salary is usually not directly tied to the fund's performance or the amount of assets under management and provides a stable income regardless of market conditions.
Bonuses
Bonuses are a significant component of fund managers' compensation. Performance bonuses are typically paid at the end of the year and are based on factors such as the fund manager's experience, the number of clients they support, and the success of their clients' investments. Bonuses may also be structured based on investment performance benchmarks, with higher bonuses for outperforming the benchmark. Additionally, fund managers may receive retention bonuses to encourage loyalty.
Equity and Stock Options
For fund managers in publicly traded companies, equity stakes and stock options can be a lucrative component of their compensation package, especially if the company's stock value increases.
Deferred Compensation Plans
Deferred compensation plans allow fund managers to defer a portion of their income to a later date, often with tax benefits.
Non-monetary Benefits
Non-monetary benefits can include health insurance, life insurance, disability insurance, paid vacation, professional development opportunities, and other perks such as the use of company jets or cars.
Fulcrum Fees
Fulcrum fees are performance-based fees that adapt to how the fund performs compared to a benchmark. However, only a small percentage of actively managed equity funds have fulcrum fees in place.
Profit-sharing
Profit-sharing is based on the fund's overall profit, individual performance, role and seniority, and the performance of the team, division, and company.
Regional Variations
Location also plays a role in fund manager compensation. Major global financial hubs like New York City, San Francisco, and Hong Kong tend to offer higher pay. Within the US, New York and San Francisco offer the highest salaries, followed by Boston and Chicago.
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Frequently asked questions
The average salary for a fund manager in the US is between $90,814 and $115,892 per year. However, salaries can range from $21,000 to $225,268 per year, depending on experience, location, and the size of the company.
The salary of a fund manager can be affected by their experience, location, education level, and the size of the company they work for. Fund managers with more experience or who work in larger companies tend to earn higher salaries. Additionally, the location of the company can impact the salary, with some states or cities offering higher pay rates than others.
Fund managers typically receive a base salary, with additional compensation in the form of performance bonuses. These bonuses are usually paid at the end of the year and are based on factors such as the manager's length of service, the number of clients they support, and the success of their clients' investments. Fund managers may also receive other benefits and incentives, such as stock options or deferred compensation plans.
