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Fund of funds compensation survey: CEO tops the list at $1.4m, CIO at $1.2m

Monday, December 29, 2014
Opalesque Industry Update - In its just-released "13th Annual Compensation Survey for Funds of Funds Managers with Assets Over $1 Billion," Infovest21 found that the Chief Executive Officer is the highest paid position with an average compensation of $1.4 million. The Chief Investment Officer's average total compensation was second highest at $1.2 million.

Meanwhile, five positions - Chief Operating Officer, Chief Risk Officer, Director of Sales & Marketing, Director of Investor Relations and Chief Financial Officer - have total compensation in the $500,000 to $999,000 range.

Four positions - Director of Research, Senior Analyst, Operational Due Diligence and General Counsel - have total compensation between $300,000 and $499,999.

Two positions - Compliance Director and Controller - have total compensation between $200,000 and $299,999.

Four positions - Mid Level Analyst, Client Services, Junior Analyst, Fund Accountant - have total compensation between $100,000 and $199,999.

2014 vs 2013 Comparison
In comparing 2014 and 2013 compensation survey results, the trend is mixed.

  • Top management's compensation levels were higher in 2014 than 2013. Operational Due Diligence also had a higher total compensation in 2014 than 2013.
  • In sales and marketing, the trend is mixed to higher. The Director of Sales & Marketing and the Director of Investor Relations had higher total compensation in 2014 but Client Services' compensation was lower.
  • In the investment area, the Director of Research and Mid Level Analyst had lower compensation in 2014. Senior Analyst, however, had higher compensation while the Junior Analyst compensation was about the same as in 2013.
  • In legal and compliance, the trend is down for both the Compliance Director and General Counsel.
  • In finance, the trend is also lower. Controller and Fund Accountant both had lower total compensation in 2014 than in 2013.
Lois Peltz, president of Infovest21, observed: "Some differences existed between the 2014 and 2013 samples surveyed. A larger percentage of funds of funds are now part of a larger organization - 31% in 2014 compared with 14% in 2013. Performance is weaker this year than last year. The average year-to-date performance (through October) for the surveyed funds of funds was 5.5% in 2014 compared with 8.6% in 2013."

The survey was conducted during September, October and November 2014 by phone and email. The results are based on data from 17 separate fund of funds firms, all with assets over $1 billion. In calculating the statistics throughout the survey, we included only those respondents who provided concrete compensation data with dollar figures.

Infovest21, founded in 2000, is an information provider to hedge fund investors, managers, funds of funds and service providers. Led by Lois Peltz, president, the firm provides news, research, surveys, white papers as well as organizes seminars and conferences. General@infovest21.com

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