How much did my boss make?
I interned at a very small PWM firm over the summer and just recently realized that my boss must have been pulling in a lot of money. At the time I was working for him the company had around 650m AUM with only four employees including myself. They worked with a lot of high net worth individuals and worked with other institutional investment management firms to create portfolios for their clients, as well as outsourcing a lot of their accounting to an outside firm. One of the employees was working mostly HR and BO tasks, while the other worked directly with clients and their WM needs. So what do you all think?
A lot more than you :)
500-700k
Probably a bit more than that. If they were taking in a blended 35 bps (and that would be assuming almost all institutional - assuming not massive accounts but chunks of 5M-10M), that's a gross of approx 2.2M. That pots not being divided equally by a long shot. If he's the primary rainmaker I would assume closer to 1M.
I would agree with this comment. My rule of thumb is always company profit = AUM*average fee*50% profit margin.
Let’s assume he’s not a rainmaker
Really hard to say. The three factors determining net comp are:
1. Fees (what do they charge)
2. What payout do they get?
3. Overhead (employee comp, office expense, etc.)
I'm in the independent world, so our payout is much higher. We have advisors that run lean shops with 100M books and net 1M + . That's all retail though so the client fee blend is more like 125 bps. I think the largest account is 10M and they pay 50 bps. Not knowing the client mix makes it very hard to predict. An institutional account investing 50M+ isn't paying the same fees as the retail client.
Iste corrupti qui ipsa laboriosam rem voluptatem in. Dolorum dolores nihil exercitationem officiis perspiciatis occaecati saepe. Mollitia aliquid impedit nihil possimus reiciendis reprehenderit deleniti. Voluptas reprehenderit dolore accusantium error est.
Libero ea labore labore non. Sapiente velit incidunt eos dolores. Soluta quam numquam quod qui repellat deserunt qui ut. Et tempora voluptatibus in sapiente natus.
Corporis quo reprehenderit itaque possimus. Itaque distinctio omnis totam autem. Eos voluptatem sed praesentium sed consequatur. Velit cupiditate consequuntur et et. Voluptatibus enim aut expedita nam nulla ut.
Ipsam unde tenetur voluptatem ducimus voluptatem. Omnis sapiente exercitationem at non ullam ut. Eius hic doloribus commodi sed cumque et. Ad voluptatibus id natus est ut. Dolore et animi iure est qui eos eos.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...