Industry Surveys & Benchmarking

2023 Compensation Survey

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Highlights

Survey Highlights:

Responses were received from 122 firms for an overall response rate of 38.1%.
77.9% of companies (95) reported their primary client group as “private” and 22.1% (27) reported “institutional”.
51.6% (63) reported having AUM “under $1 Billion” and the remaining 48.4% (59) reported their AUM as “$1 Billion & above”.
37 jobs were surveyed, consistent with last year’s survey.
3,238 incumbents were matched to survey positions; of these 82 reported no salary, leaving 3,156 incumbents. This is up from 3,048 incumbents last year.

2023 Supplier Inventory Survey

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Highlights

Thank you to our member firms who participated in the 2023 Supplier Inventory Survey. The survey results have been distributed to all those who participated.

Report Highlights:

101 firm participants
Responses by AUM:
- < $150 million (19%)
- $150 million – $499 million (24%)
- $500 million – $999 million (20%)
- $1 billion – $5 billion (30%)
- $5 billion – $25 billion (3%)
8 service areas were surveyed:
- Technology & Business Continuity
- Custodian, Fund Accounting, & Account Statements
- Legal & Compliance
- Training Resources
- Accounting & Audit
- Insurance & Group Benefits
- Human Resources
- Diversity, Equity & Inclusion

2023 Hybrid and Remote Work Policy Survey

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Key takeaways

Thank you to all of the 135 member firms that participated in this survey.

The data collection period for this survey was August 2023 – September 2023.

Key takeaways:

74.8% of firms have a formal policy for working location (in-office/hybrid/remote).
Over 53% of firms currently require employees in the office 3 days or more per week. Similar to the response in the 2022 survey.
Western Canada firms reported the highest in office policy with over 60% of firms requiring in office work 3 days or more per week.
83.5% of firms do not provide incentives for staff to return to office (beyond in-person collaboration).
>65% of firms provide the opportunity for extended remote work under certain circumstances.

2022 Compliance Benchmarking Survey

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Respondent Demographics

Responses were received from 158 firms, including 152 PMAC members (representing approximately 50% of members), the remaining six responses were from non-member portfolio managers.

43% of respondents were smaller firms (AUM < $500M); 37% were medium firms (AUM $501M – $5B); and the remaining 20% were large firms (AUM > $5B).
Respondents had a mix of private and institutional clients.
16% of respondents are registered with a non-Canadian securities regulator, in addition to their CSA registration.

Key Takeaways

Priorities for the next 12 to 18 months:

1. Client Focused Reforms Implementation
2. KYC & Suitability
3. KYP
4. Cybersecurity
5. Seniors/Vulnerable Investors

Surprisingly, despite COVID-19 and working from home policies, there has been a decrease in firms that have policies and procedures in place to address cybersecurity risks (78% compared to 83% in 2018). Respondents who have purchased cyber liability insurance has increased significantly from 27% in 2018 to 42%. Those relying on partial coverage in their overall insurance policy has declined from 42% in 2018 to 26%.
While 70% of respondents monitor social media use for unauthorized use by employees, there is a regulatory expectation that all firms should be doing this. Additionally, only 35% of respondents retain paper or soft copies of social media postings.
Private Client Firms need to do more work on seniors and vulnerable clients:

1. How to identify clients that may be vulnerable
2. Warning signs of financial exploitation of a vulnerable client
3. How to collect and document Trusted Contact Person (TCP) information

2019 Succession Planning & Ownership Transition Survey

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Highlights

The Portfolio Management Association of Canada (PMAC) completed this survey in association with Crosbie & Company, an independent financial advisory and investment banking firm. Highlights of the survey are as follows.

The report is intended to provide the portfolio management industry with reliable data for evaluating succession and ownership transition considerations. The information covers firms’ current practices regarding succession plans, their expectations for the future and the most important factors constituting a successful transition.

Survey Highlights:

Responses were received from 66 firms
8% of respondents had AUM < $100 million; 48% had AUM from $100 – $500 million; 21% had AUM from $500 million – $1 billion; 11% had AUM from $1 – $2 billion; 12% had AUM > $2 billion
Over 42% of respondents believe they will need to complete some form of succession or ownership transaction/transition in the next 5 years.
The most important considerations for owners during a succession plan or transaction were; client optics, retention of key client relationships, impact on other employees and senior management and receiving an acceptable valuation.
39% of firms report that they are actively planning and/or exploring a possible succession transition.
The full or partial sale of ownership of the firm to employees through an internal transition was considered the most appropriate option for the vast majority (78%) of respondents.
Although a variety of valuation methodologies and metrics are used, multiples of revenue is the predominant method followed by multiples of EBITDA and percentage of AUM.

Industry Surveys & Benchmarking

2023 Compensation Survey

2023 Supplier Inventory Survey

2023 Hybrid and Remote Work Policy Survey

2022 Compliance Benchmarking Survey

2019 Succession Planning & Ownership Transition Survey

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