GREENWICH, Conn. — Australian equity portfolio sizes and brokerage commissions were down for the year ended Aug. 31, according to a report by Greenwich Associates. But salaries for Australian equity professionals increased over that period, Greenwich found.
Equity portfolio sizes dropped 10% since Aug. 31, 2002, according to the report. Portfolios of the largest 20 investors surveyed slipped to an average A$6 billion (US$4.4 billion) for the year, compared with about A$7 billion a year earlier.
The largest 20 investors surveyed spent less on commissions in 2003 — an average of A$13.8 million — down from an average of A$14.9 million for the year ended Aug. 31, 2002, the survey found.
Australian brokers earned an average commission rate of 28 basis points in 2003, according to Greenwich. That rate is expected to fall to 27 basis points next year, according to the 47 institutions surveyed for the 2003 report.
The average salary for Australian traders increased 8% to A$270,000 in 2003, the report found. Bonuses were up for traders and head traders this year, but lower for researchers and portfolio managers, according to the report.