What changed in 2018 is that markets became more volatile and investors turned increasingly cautious, slowing the flood of new money into cheaper index funds. A decline in assets—and revenue—is no longer a dormant threat for managers. And many are warning it’s going to get worse.

“2019 will be the start of much tougher years for asset managers,” said Alan Johnson, managing director at compensation consultant Johnson Associates.

This year incentive bonuses for asset managers are expected to rise 5%, according to the firm, but that is down from a 7% boost in 2017. Next year, Mr. Johnson predicts bonuses will retract by 5%.

The Wall Street Journal / November 19, 2018