The asset management segment was initially on track to see a 7% increase in year-end incentives, but starting in the second half of this year projections slid to a 5% increase due, in part, to rising competition among money managers and fee pressures, said Alan Johnson, managing director of Johnson Associates, in a phone interview.
These factors are also expected to lower incentive compensation moving into 2019, Mr. Johnson said.
“What we’ve see with our clients is continuing movement into lower-fee products. It used to be that you’d worry about assets leaving, but now you worry about products going from 100 basis points to 50 basis points. It isn’t just assets leaving, but them moving to lower fee products which isn’t as obvious,” Mr. Johnson added.
Pensions & Investments / November 12, 2018