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Money Management

Johnson Associates: Money manager bonuses expected to be up to 5% higher than last year

Money management professionals can expect bonus payouts in 2017 to be up to 5% higher than last year, said projections from compensation consultant Johnson Associates.

The projections are due in part to higher average assets under management thanks to market appreciation and inflows, offset by fee pressures due to passive investing.

This compares with the 5% decline in 2016 from the year before.

The consulting firm believes that regulatory and political unknowns keeping asset managers cautious, new strategies leading to higher costs, and ongoing cost cutting and headcount constraints are additional factors leading the projected payouts to be flat to slightly up from last year.

Incentive payouts for professionals in private equity are expected to increase 5% to 15% from 2016, while professionals in the hedge fund industry can expect this year's bonus to be up to 5% higher than last year's bonus.

The projections are based on second-quarter trends in the financial services industry.