The mood in Boston’s financial district these days is unmistakably downbeat. Assets at the city’s fund management companies have declined by as much as 50 per cent over the past few months, bringing with it a precipitous drop in revenue. Many firms have announced lay-offs. And bonuses for workers who remain are projected to be down as much as 50 per cent this year, according to estimates by compensation consultants.

“There’s a palpable uncertainty about employment,” says Robert Reitano, a finance professor at Brandeis University’s International Business School, located just outside the city. “People are worried about whether they will be laid off as companies continue to downsize.”