Royal London Asset Management has altered the compensation plan for its equity managers to incorporate an element of longer-term performance.
From this year, the bonus plan will no longer be purely based on 12-month performance, but will take into account longer-term numbers. In 2010, compensation will be spilt equally between one and two-year performance - while it will be calculated over one and three years in 2011, again split 50/50.
"It is right for fund managers to focus all their efforts on performance, but we also think clients are looking for consistency," Royal London Asset Management CIO Robert Talbut says.
"This is a statement of the evolution of our business. We have got some really strong short-term performance through the door; we now need to make sure the fund managers maintain this through consistency of performance.
"We have put in a lot of work and it is pleasing to see this work is coming through in terms of good performance. There is no way we will be resting on our laurels, but there is still much more work to do to convince people we are more than just a bond house."
These changes will bring the compensation package for RLAM's equity managers more in line with the group's bond team.
