The world’s biggest asset managers will start cutting pay as they begin to tighten their belts.
BlackRock, the largest fund manager in the world, reported an 11% drop in assets under management in the three months to the end of June, representing its second consecutive quarterly decline.
The US-based fund group said it would postpone hiring for more senior roles and would fill other available positions with less expensive junior employees, in an attempt to save costs.
State Street reported an 11% drop in AUM in the second quarter compared with the same period a year earlier. The Boston-based asset manager said pay and employee benefits fell 15%.
T Rowe Price said staff numbers rose by more than 3%in the first half, but the investment manager is now sounding far more cautious on hiring.
