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Fund houses cut bonuses

Asset management staff in the UK and US had their bonuses cut in 2016 due to volatile markets, pressure on money management profit margins and increased compliance costs.

Schroders, Henderson, Aberdeen and Ashmore in the UK and Franklin Templeton, Legg Mason and Invesco in the US were among the international investment houses to cut bonuses in 2016, according to FTfm analysis of annual reports.

There are now fears that asset management staff will face another round of pay cuts into 2017. Greenwich Associates and Johnson Associates, the consultancies, said in a recent report: “The business environment for 2017 doesn’t look to be improving — and could get worse.”