Salary survey: Fund management pay rises

Salaries of fund management staff are rising for the first time in two or three years, according to the recruitment firm Morgan McKinley, which surveyed 120 employers and hundreds of individuals.

Jeremy Canning, head of fund management at the firm, said some of the biggest rises were at hedge funds as a result of the sector's buoyancy. Some equities staff at banks had increased their salaries by 20% by joining hedge funds.

The survey of positions in London found that portfolio managers in traditional asset management firms with 4 to 8 years experience typically earn 60,000 - 100,000 (€90,000 - €150,000). Research analysts are in the same salary range.

Marketing executives with the same experience earn significantly less, at 40,000 to 65,000, while those with 2 to 4 years experience earn 30,000 to 42,000.

Canning said that while precise comparisons with previous years were difficult to make, it was clear typical salaries have begun to move higher since late 2003 in traditional and alternative asset managers, as well as private banking and investment consultancy.

The survey did not cover bonuses, but Canning estimated these had roughly doubled in the past year. 'Bonuses for 2002 were typically 20% to 30% for asset management staff, but they were more like 40% to 60% for 2003,' he said. That still left them well below the levels of three or four years ago, however.

Mogan Mckinley said: 'Hedge funds are generally becoming more institutional and as a result salaries and packages are falling more in line with investment banks and main fund managers.

'However base salaries vary enormously in hedge funds, especially in newer firms.'

Successful hedge funds are still generating enormous earnings for their owners. Last month the two founders of RAB Capital made a paper profit of 25m each when the company floated in London.