As of December 31, 2012, the employees, officers, and director of RS Investments had investments in RS products valued at approximately $32 million. The bottom line – we believe in what we do and we're invested right alongside you.
Today RS is an independent subsidiary of The Guardian Life Insurance Company of America, with approximately 20% of the firm's equity ownership in the hands of its investment and business professionals. As of June 30, 2012, the firm managed $21.9 billion for both individuals and institutions.
Critical goals at RS Investments include recruiting and retaining the best investment talent and then encouraging this talent to operate as a team. To accomplish this, we offer competitive compensation packages.
RS Investments professionals and executives maintain a significant ownership stake in the firm. RS Investments has three separate investment advisory operating divisions (each, a "Group"), each with separate compensation and bonus structures.
In establishing salaries and bonuses, RS Investments considers information regarding industry compensation levels, which is prepared by a leading consulting firm. RS Investments sets salary and bonus levels by reference to other investment firms investing in similar categories.
In consultation with Matthew H. Scanlan, Chief Executive Officer of RS Investments, the leaders of each Group determine all salaries and bonuses for their respective Groups for the RS funds for each fiscal year end. Salaries are based on industry standards, as described above.
Bonuses within the Growth Group are based on a number of factors, including (1) pre-tax investment performance for each account (including the Funds) managed by a portfolio manager compared to a relevant benchmark (as described in the Funds' prospectus) and peer group over one- and three-year periods, and (2) experience.
Bonuses within the Value Group are based on a number of factors, including (1) pre-tax investment performance for each account (including the Funds) managed by a portfolio manager compared to a relevant peer group over a rolling three-year period, with particular focus on account performance during periods of losses in the general market, and (2) measurement of an individual's continuous improvement in the areas of investment judgment and analytical process.
Assets under management do not directly affect any individual's salary or bonus, although the amount of each Group's assets under management affect the fee revenue attributable to that Group, which in turn affect the maximum amount of money available for that Group's aggregate salaries and bonuses.
Certain portfolio managers also have an equity interest in RS Investments and so participate in overall firm profits, in addition to Group profits.
If you have any fiduciary concerns or corporate governance questions and would like to submit a question or comment to RS Funds/RS Investments, please contact James L. Smith, Chief Compliance Officer, by mail at:
James L. Smith
Chief Compliance Officer
388 Market Street, Ste. 1700
San Francisco, CA 94111