All-America Buy-Side Compensation
The average mutual fund portfolio manager expects to earn $1.37 million this year — just shy of the $1.42 million reported by their hedge fund counterparts.
Employees of mutual funds and investment advisory firms with assets under management ranging from less than $500 million to more than $75 billion shared their current salary and expected 2018 bonuses for II’s second annual All-America Buy-Side Compensation Report, which breaks down pay by job title and firm AUM. Roughly 900 portfolio managers, research analysts, and managers-cum-analysts at North American hedge funds, investment advisory firms, and mutual funds responded to this year’s survey.
Mutual fund portfolio managers said they expected to earn $251,424 in base pay on average, plus variable pay — including bonuses, commissions, and options — of $1.12 million.
At investment advisory firms, PMs anticipated $805,583 in total compensation for 2018, including an average salary of $324,604.
The 2018 All-America Buy Side Compensation report measures the average base and variable compensation for Portfolio Managers, Portfolio Manager/Research Analysts, and Research Analysts at the top Hedge Funds, Investment Advisory Firms, and Mutual Funds in North America.
Participants in the survey:
- actively managed U.S. equity assets in 2018;
- disclosed their 2018 base compensation;
- disclosed their expected variable compensation (bonus, commission, options) for 2018; and
- disclosed what they expect to happen to their total compensation over the next 24 months.
- ~900 individuals responded to the survey
Compensation amounts given in currencies other than United States Dollars were converted to USD using the average exchange rates for May 2018.
The average of the reported base and variable compensation figures in USD were calculated for each of the three title groups (Portfolio Managers, Portfolio Manager/Research Analysts, and Research Analysts) for each of the three institution types (Hedge Funds, Investment Advisory Firms, and Mutual Funds) broken out by eight AUM bands.
The proportion of the group of individuals with a given title at a given institution type whose given base and variable compensation falls within each of the dollar amount ranges is calculated within each AUM band.
Expected Change in Compensation
The proportion of the group of individuals with a given title at a given institution type that gave each answer type is calculated within each AUM band.