Recent Membership Survey by Portfolio Management Association of Canada
(PMAC) Finds that Active Management is Working Hard for High Net-Worth and Institutional
Positive Outlook on Industry Rewards, Better Due Diligence by Clients
Looking for Suitable Portfolio
Managers and Successful Risk Management Strategies Count on Upside of
Industry Movement Forward
TORONTO, Nov. 22, 2011 /CNW/ - Canada's top portfolio management firms
are actively encouraging investors to stay calm in a sea of market
volatility and negative world economic events, according to a recent
quality membership survey by the Portfolio Management Association of
Canada (PMAC) (www.portfoliomanagement.org).
Staying the course and remaining calm are the primary messages the
investment industry is relaying to its clients. Continuing market
volatility, negative world economic events and provincial
differentiations in regulatory policies count as the top three reasons
for a beleaguered investment industry, the survey finds. On the flip
side, the November 2011 survey finds better due diligence by clients
looking for the right money manager, much greater access to information
for investment products and potential portfolio investments and strong
risk management strategies are key factors in a positive outlook for
the business of money management.
Katie Walmsley, President of PMAC, says: "Now is the time to stay the
course is the clear message PMAC members are communicating to their
clients. Despite prevailing nervousness about the global economy, the
industry wants its long-term focus and messages to be unified. This is
what will allow the industry to thrive."
Walmsley adds that PMAC's members, who represent over $800 billion in
assets under management, are emphasizing the urgency to adjust
portfolios to manage risk and investor expectations of long-term
returns. "The Association survey took the pulse of our members leading
up to today's AGM. The results are loud and clear that despite
worsening economic markets, our member companies are working diligently
to ensure their valued clients are aware of the challenges facing in
domestic and global financial markets and how the industry intends to
weather the volatility."
The survey to gauge membership issues also touches on recurring themes
in portfolio management, including (in order of importance), the
challenges of regulatory and compliance issues, the successes of having
a good talent pool in Canada, the benefit of great educational
standards and the need for a long-term focus.
Says Walmsley: "We have the best and most educated pool of investment
talent in the world. Investors would be prudent in keeping
communication lines open with their portfolio managers, so they don't
make any rash moves that could impact them negatively in the long
run. Canada's economy continues to weather the storm and this seems to
be attracting the attention of investors around the globe."
The industry association President also says PMAC is encouraged by the
recent progress to harmonize provincial securities regulation across
Canada. However, the membership survey noted some of the inefficiencies
with the current fragmented regulatory system with some optimism that
the Supreme Court will rule in favour of a National Securities
Regulator. "Just as every Canadian should be entitled to certain
standards in healthcare and public safety, we believe they should have
equal access and protection when accessing our capital markets."
About Portfolio Management Association of Canada (PMAC):
Portfolio Management Association of Canada (PMAC) represents an
influential membership of over 150 portfolio management companies that
manage more than $800 billion in assets for over one million
institutional and high net worth clients. Members span private clients,
pensions, insurance, foundations and endowments. As one of the largest
financial industry Associations in Canada, PMAC carries on the rich
50-year tradition of ICAC's work, and operates coast-to-coast in
English and French language markets.
PMAC employs a collaborative information-sharing business model and
advocates on behalf of its members to securities regulators and
government agencies. The Association increases the awareness of
investment counseling benefits, provides a forum for member networking
and keeps members up-to-date on regulatory and compliance issues. From
institutional pension plans to charitable, endowment and high net worth
client accounts, PMAC members work to facilitate investment
opportunities for millions of Canadians.
PMAC membership has steadily grown in recent years. PMAC represents
investment management firms registered to do business in Canada as
Portfolio Managers. The Association's mission is to advocate the
highest standards of unbiased portfolio management in the interest of
investors served by members. For further information on PMAC, visit www.portfoliomanagement.org.
SOURCE Portfolio Management Association of Canada
For further information:
Contact Margo Rapport
H2 Central Marketing and Communications