The two owners of Marshall Wace, one of London's largest and most influential hedge funds, paid themselves more than £10m each last year, according to the group's annual report.

Marshall Wace Asset Management Limited's annual report shows Paul Marshall and Ian Wace, who each own 50 per cent of the company, shared a dividend of £9.89m in the year to last August. The highest-paid director - believed to be Mr Marshall - was paid a further £6.6m. Mr Wace is believed to have been paid a similar amount.

However, the report, which was filed at Companies House last week, also shows that Marshall Wace has reorganised itself as a partnership, making future pay disclosures less visible to outsiders.

In recent years hedge fund managers have become increasingly sensitive about disclosure of their pay amid increasing scrutiny of the lightly-regulated industry. Although partnerships must file accounts, they only have to disclose the total amount distributed to the partners, and do not have to break out how much the highest-paid director received.

According to the report, Marshall Wace injected its fund management operations into a limited liability partnership in October 2003 - just a few months into its financial year, which ends in August. Future profits will be divided between the the members of the partnership, which has five partners including Mr Marshall and Mr Wace. Meanwhile, Marshal Wace Asset Management Limited will continue as a company that provides services to the partnership.

Partnerships are also attractive because they offer tax benefits, and make it easier for new partners to join or old ones to leave.

According to the report, the company earned management fees of £2.73m in the year to August 2004, down from £14.11m in the previous 12 months. Performance fees were £23.11m (£23.74m).

During the year the company donated £2.4m to various charities. Mr Marshall and Mr Wace are directors of Ark, the hedge fund charity.

Marshall Wace is seen as one of the most influential hedge funds because of its stockpicking system.