National Investment Company Service Association (NICSA)

Location:  Miami, Florida

Asset Management Compensation: A Difficult 2008 & Challenges for 2009

February 2009

A difficult 2008 may be followed by an even tougher 2009 as year starts with lower AUMs.  Several downbeat indicators for 2009, with little to no momentum entering the year, and fees lower on asset depreciation, investor redemptions and poor investment results.  Alternatives fall out of favor amid a flight to safety.  Hedge fund losses continue, with many firms closing.  On a broad basis, preliminary estimates for 2009 may be down as much as 25% – 30% versus 2008.  Firms need to rethink salaries and structure of compensation.