How much am I worth? Technology fund manager

A panel of specialist headhunters give their assessment of typical London pay packages: Technology fund manager - salary (for five years experience) 80,000-100,000 - bonus

typically 30-50%.

Few sectors have fallen from grace as absolutely as technology. At the height of the dot-com bubble in the late 1990s - up to say, mid-2000 - tech stocks were the business.

Anybody associated with them (through stock analysis, setting up the companies themselves or managing portfolios that specialised in them) could expect to be rewarded handsomely. Yet now, many of the most highly praised companies are either bust

or trading as penny stocks.

The MSCI World Information Technology Index has fallen by close to 50%, with bonus awards falling much faster as banks and financial institutions have taken fright. Many mainstream equity investors have been scared off altogether, preferring the security of traditional companies that make things you can actually see and hold.

And yet - all is not doom and gloom. "Technology has lost its glamour status since the bursting of the dot-com boom, but nevertheless remains a significant sector," says Martin Symon of

Alexander Mann's asset management division. He adds that funds are likely to be managed globally and have a strong US content, with stocks analysed on a more fundamental basis than before.

Simon Bell of Napier Scott's wealth management division suggests the sector has probably turned the corner. He argues that significant cost reductions are now proving effective - though they must continue - while new generation software and hardware as well as new fixed-line services and other innovations are helping boost the sector's appeal.

So what has this meant for technology portfolio/fund managers? Bell says they have lost whatever pariah status they acquired at the depth of the dot-com recession and are seen once again as an integral part of a company's investment team, although "managers are generally seeing their pay aligned to their sector/fund contribution."

The slump in the sector means total packages are down some 40%-60% from their height, while huge differerentials have opened up: total packages can range between 150,000-250,000 or more widely depending on company and sector, with those at the top end likely to have many years of expertise in their area and an excellent track record in riding out the slump of 2001-03.

Symon suggests top rank fund managers can expect a base of 125,000 - especially if heading a team - and will have a high profile within their organisation.

So what sort of person makes the grade? "As ever, the most attractive candidates in the market are those with limitless enthusiasm for their sector, a natural passion for the subject and

a credible background that supports a successful investment style," says

Bell.

Some institutions are inclined to poach from competitors, whilst others tend

to seek fund managers with industry background - someone able to tell the

difference between a bite and a byte and talk about java without meaning

coffee or an island in Indonesia.

Symon notes that some technology fund managers are selected not for their knowledge of the sector - which may be minimal - but for their general skill as stock-pickers and their

understanding of business models. If more detailed information is required

they are usually able to call on sell-side research anyway.

The outlook? Most headhunters suggest things can only get better and this seems a reasonable prognosis. Like railway companies in the late 19th century or steel in the early years of this century, the technology sector has had its days of feverish boom - but can look forward to being a less exciting but still key part of the investment scene.

After their roller coaster ride, technology fund managers are likely to welcome some quiet normality.

Figures and commentary supplied by Alexander Mann Global Markets and Napier

Scott.