Cover of MoneyWeek magazine issue no 730

Are markets right to be so laid-back over Greece?

16 February 2015 / Issue 730

Investors have taken the latest episode in the Greek debt crisis all in their stride. Should they be more worried, asks John Stepek Read this week's cover story here.

PLUS:
• There's nothing immoral about tax avoidance
• The race to develop electric robot cars
• Italy's richest man – the real-life Willy Wonka


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Excerpt

John StepekEDITOR'S LETTER

John Stepek

Lessons for asset managers from the bankers

Who has benefited most from quantitative easing (QE)? You might say bankers – and you could argue that being saved from oblivion with reams of printed money is something to be very grateful for.
But if we’re talking salaries here, investment banking pay has fallen hard (in real terms, at least) since 2006, according to the Financial Times. No, the real winners from QE have been asset managers – the people who invest our money on our behalf.

A study out last week by think tank New Financial looked at “average compensation cost per employee”. Between 2006 and 2014 the average cost of an investment bank employee fell by 25% to $288,000. Meanwhile, the average cost of asset management staff rose by 22% to $263,000. If that continues, says the FT, asset managers will overtake the investment bankers by this time next year.

How has this happened? It’s pretty simple.

• Read the full editor’s letter here: Lessons for asset managers from the bankers