Johnson Associates revised downward its forecasts for bonus increases in 2012 for long-only and alternative asset managers, citing continued market uncertainty in the compensation consulting firm's latest quarterly report on incentive compensation trends for the financial sector.
The second quarter remained a difficult environment for asset gathering, marked by equity market declines that were partially offset by inflows to fixed-income products, according to Johnson Associates' latest report released Thursday. Against that backdrop, the firm predicts bonus payouts in 2012 for long-only focused money management firms will range from flat to up 10% from the year before. Three months ago, Johnson Associates predicted bonuses would come in this year between 5% and 10% higher than 2011.
Likewise, the firm trimmed its prediction for hedge fund bonuses this year to up to 10% more than 2011, down from the 5% to 15% range announced three months ago. The latest report from Johnson Associates noted that an increase in hedge fund assets was being offset by mixed performance for the first half of 2012.
The firm left its prediction for private equity bonus payouts unchanged from the prior quarter, at between flat and up 5% from the year before.