The salary and job prospects for entry level investment performance analysts have become a hot topic in the finance industry. As a critical role in investment firms, performance analysts conduct quantitative analysis and produce reports to evaluate investment performance. With the growth in assets under management, there is increasing demand for qualified analysts. This article will provide insights into the typical salary range, required qualifications, career path and future trends for entry level positions in this field.
Base salary for entry level is $60k – $90k
According to industry data, the typical base salary range for entry level investment performance analysts straight out of college is $60,000 to $90,000 per year. This salary range can vary based on factors like geographic location, firm size, specific responsibilities, academic qualifications, and prior internship experiences. Top graduates from elite universities can earn towards the higher end while others make closer to the lower end.
The base represents only one component of the overall compensation. Performance bonuses can add a significant variable amount depending on individual and firm performance for the year. The total compensation will also include employer’s 401k matching contributions, health insurance and other benefits.
CFA charter boosts prospects and pay
The CFA charter has become an unofficial requirement for career progression and higher salaries in many investment roles. As the gold standard for investment analysis skills, employers highly value CFA charterholders and the rigorous preparation it entails. Entry level candidates who have passed CFA level 1 see improved prospects during recruiting. Completing the 3 CFA levels significantly boosts the odds of securing a junior investment performance analyst role and negotiating higher compensation.
Beyond better job prospects, there is a salary premium for investment performance analysts with a CFA charter. Surveys show charterholders earn upwards of 20% more in total compensation compared to similar roles without the credential. This pay advantage sustains throughout the career as senior level charterholders make well into six figures.
Career advancement path to senior roles
The career path usually starts as a junior investment performance analyst with responsibilities focused on daily pricing of client portfolios using internal models, preparing performance reports, conducting attribution analysis, and supporting senior staff. With 2-4 years of experience, analysts can get promoted to a senior analyst role with more complex analysis, model development, client interactions, and management of junior team members.
After 5+ years of progressively advanced analytical and modeling skills combined with project management experiences, analysts can attain a supervisor or manager position. Further career progression leads to head of investment analysis and Chief Investment Officer roles at the executive leadership level with deep investment domain expertise and proven leadership capability.
In summary, typical base compensation for entry level investment performance analysts ranges from $60,000 to $90,000, with significant upside potential from bonuses tied to performance. Candidates can improve their hiring odds and future salary growth prospects by obtaining the CFA charter. With several years of increasing job responsibility, top performers can advance their careers to senior analyst, manager and eventually executive positions.