Our overriding objective is to ensure alignment of interests while providing incentives that attract and retain exceptional people. This is closely linked with our capacity management process, which ensures we control the capacity of our investment strategies to maintain liquidity and protect performance potential for our clients.
Given our focus on stewardship and ESG, all job descriptions for investment personnel include an element on responsible investment and annual goals will reflect the relevant priorities in this area.
Remuneration for investment personnel blends three components: basic salary, performance-based bonus and long-term incentivisation.
Performance Based Reward
The performance-based bonus scheme pays a bonus for achievement against investment performance targets on Martin Currie funds. The bonus is determined either as a % of salary or % of revenue as appropriate (depending on fund size). A sliding scale of bonus outcomes will apply for outcomes between threshold and target performance. In addition, Investment professionals also have an element of bonus which rewards for performance against role expectations beyond investment outcomes, their individual delivery against goals and also broader contribution to the business. Given our integrated approach to ESG / Responsible Investment we do not specifically separate this out. This second element of the performance is measured using the following five-point scale:
Risk and compliance inputs will be taken into account when determining overall bonus outcomes. For example, the number of times the tracking error is outside the agreed tolerance range, adherence to IMAs, meeting all employment, risk and compliance policy requirements.
In the case of new product launches, specific bespoke arrangement can be put in place which will typically be a percentage of salary based and focus on building the book, developing the revenue stream and creating a positive track record.
We actively encourage the development of skills and knowledge across the organisation. All members of the investment team are required to participate in a minimum level of Continuous Professional Development (CPD) each year - both structured and unstructured. This includes all aspects of investment. As part of this we organise structured CPD on Responsible Investment. This includes both internal training sessions as well as structured training through the CFA and external service providers.