Fund Managers' Salaries May Be Hit in 2018

  • Greenwich Associates estimates pay is still up 7% this year
  • With returns and pay ‘delinking,’ a ‘reversal’ is likely
Pedestrians pass in front of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Dec. 1, 2017.Photographer: Michael Nagle/Bloomberg
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Money managers’ pay will come under pressure in 2018 as the asset-management industry scrambles to manage rising costs and increased competition from cheaper passive funds, according to Greenwich Associates.

While average pay rose a projected 7 percent this year, the impact of cost constraints is already starting to show, the advisory firm said in a report. Fund managers should brace themselves for “tough compensation negotiations,” it warned.