Full Article
Research

All-America Buy-Side Compensation

Ranking Overview Methodology

The average hedge fund portfolio manager will take home just shy of $1 million in 2017, according to Institutional Investor’s inaugural All-America Buy Side Compensation report.

The new survey calculates average base pay and variable compensation across hedge funds, mutual funds, and investment advisory firms, with variable income defined as bonuses, commissions, and options.

Roughly 800 portfolio managers and research analysts at firms managing U.S. equities self-reported their current incomes and what they expect to earn over the next 24 months.

In addition to role and firm type, compensation is compared within eight levels of firms’ assets under management, ranging from less than $500 million to $150 billion or greater.

The 2017 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 2017; • disclosed their 2017 base compensation; • disclosed their expected variable compensation (bonus, commission, options) for 2017; and • what they expect to happen to their total compensation over the next 24 months. • ~800 individuals responded to the survey

Compensation amounts given in currencies other than United States Dollars were converted to USD using conversion rates as of October 1, 2017.

Definitions:

Average Compensation

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.

Compensation Distribution

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. The percentages listed in the Total row for each of these tables shows the overall proportion for each answer for all of the individuals in the title/institution type grouping across all AUM bands.

Read more

To view the full rankings, subscribe now. Already a subscriber? login.