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UK fund manager profit squeeze set to shrink bonuses by 20%

Forecast for lower bonuses follows an October Moody’s report that highlighted a 10% drop in the collective assets under management for 20 European asset managers

Many firms have recorded steep falls in assets under management this year, driven by heavy investor outflows and market performance amid a backdrop of soaring inflation and rising interest rates
Many firms have recorded steep falls in assets under management this year, driven by heavy investor outflows and market performance amid a backdrop of soaring inflation and rising interest rates Photo: Vuk Valcic/Getty Images

Some of the UK and Europe’s largest fund management houses have seen assets under management shrink this year as volatile markets continue to have a knock-on impact on revenue and profit across the sector.

Now the squeeze is expected to hit bonuses for fund management professionals, with estimates that variable pay for 2022 could be down by as much as 20% compared to last year.

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