Fund managers' pay falls - AIMR survey

The earnings of UK investment professionals have fallen by 16% since 2001, a new survey shows.

Their average pay declined from 124,055 (€173,400) to 103,502 (€144,700), largely due to falling bonuses, according to the report by the US-based Association for Investment Management and Research (AIMR) and the headhunter Russell Reynolds.

While base salaries changed little during the period, bonuses fell from an average of 43,419 in 2001 to 28,188 in 2003, a drop of 35%.

As a result more than 50% of UK investment professionals now considered themselves underpaid, the survey found.

However they earned 22% more than the worldwide average of 80,946. Pay was lowest in Japan and Switzerland.

Reductions in the UK were largest for research managers and equities fund managers, whose pay fell 51% and 49% respectively.

Investment professionals working for banks were hit hardest. Those at investment counselling firms and securities brokers were paid the most.

The survey also showed the pay gap between men and women in the UK had almost disappeared, with women just 3% behind in 2003 compared to 24% in 2001.

The survey covered 16,500 investment professionals working in the UK, the US, Canada, Switzerland, Hong Kong, Singapore and Japan. They worked in a variety of positions including portfolio manager, research analyst and pensions officer.