Calculate the Financial Potential of Independence

Gauge how much you would earn as an independent portfolio manager

As an employee of a firm or financial institution, your revenue is shared with your employer. What difference would independence make? Follow the steps below to get a broad idea. You will be asked to provide your name and email address at the end so our Regional VP may contact you to discuss your detailed results.

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Current Profit

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Going Independent

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Click here to review detailed results

Based on your current responses, additional information is needed to produce your report. Please contact an NBIN Regional Vice-President at the following email address: NBIN.RVP@NBC.CA.

Result

Annual revenue and expenses

Current Model Going Independent
$ Value $ Value
REVENUE
Gross revenue $ $
Broker/dealer share of revenue $ $-
Net revenue for advisor team $ $-
OVERHEAD EXPENSES
Total Compensation for non-principal $ $
Premises $ $
Other expenses $ $
Total Overhead expenses $ $
Total profit $ $

Notes:

  • [1] Custody fees or trading costs are not included in the above calculation, these costs are usually paid by end clients.
  • [2] The estimate does not include any drawdown by the principals/owners.
Assumptions

The assumptions used in this tool are described below.

Gross revenue: Revenue collected from clients for all your services. This is estimated as Assets Under Management (AUM) x average basis point earned from these assets; the default is 100 basis points (1%), but you can enter the % per your mix of clients and product offerings. To make the calculation comparable, the calculation assumes that 100% of your current AUM will be transferred to your independent business.

Broker/dealer share of revenue: The amount of gross revenue withheld by your broker/dealer to cover the broker/dealer profit margin and costs absorbed for the advisor.

Net revenue for advisor team: Gross revenue x gross payout %.

Overhead expenses: These expenses are assumed to be fully bound by the owner(s) under an independent model and partially covered by the broker/dealer under the full affiliation model. The tool defaults this % covered by the broker/dealer to 80% but it can be adjusted by the user.

Total compensation for non-principal: Compensation for administrative/non-owner staff; estimated at $75,000 per staff member.

Other expenses: Include expenses for premises, recurring expenses such as insurance, registration, quote services and other office expenses. Premises cost is estimated at a monthly cost of $25 per square foot for downtown Toronto. The actual cost may be significantly different in other metropolitan areas or outside the downtown core.

Total profit: This amount excludes any drawdown by the owner/principal.

Disclaimer

National Bank Independent Network (NBIN) is a division of National Bank Financial Inc. (NBF) as well as a trademark owned by National Bank of Canada (NBC) that is used under license by NBF. NBF is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Custody services accessed through NBIN are provided by either NBF or its affiliates National Bank Trust (NBT) or Natcan Trust Company (Natcan). NBT and Natcan also offer trustee services through NBIN. NBF, NBT and Natcan are all subsidiaries of NBC, a public company listed on the Toronto Stock Exchange (TSX: NA).

NBIN provides order execution only and custody account services to independent Portfolio Managers and Investment Dealers. NBIN makes no investment recommendations and assumes no responsibility for the suitability of the investments and/or strategies determined by the Portfolio Managers or Investment Dealers.

This tool (Calculator) is designed to provide a general overview of the earning potential under an independent model. The Calculator is an interactive tool that uses the information that you supply to simulate pro-forma financial results under different scenarios. The general accuracy of the simulated scenarios will depend on how closely the variables chosen by you match your actual circumstances. As such, the Calculator is inherently limited, and the scenarios provided are not meant to be exhaustive or comprehensive and may not be representative of your actual earnings, which may be materially different than those simulated. The simulated results are approximated based on a set of assumptions. They do not and should not in any way be interpreted as a reflection, guarantee or promise of actual or future results or earnings and do not create any legal or contractual obligation for NBIN or any of its affiliates. While every effort is made to keep this tool up-to-date, NBIN does not make any express or implied warranties or representations with respect to any information or results provided by this Calculator. NBIN shall not be responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information or calculations provided by the Calculator nor be held liable for any loss or damage of any kind whatsoever arising out of, or in connection with the use of the Calculator. This tool is not intended to provide financial, investment, legal, tax, or regulatory compliance advice. You should consult your own professional advisors before taking any action.

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Terms and Conditions

The information required in this calculator is necessary to allow NBIN to assess your needs and offer you services adapted thereto. By clicking “continue”, you consent to having the personal information submitted through the use of this calculator and the results generated therefrom being shared with a NBIN representative for review and further consent to having a NBIN representative contact you by email inviting you to discuss the results. You will have no obligation whatsoever to accept the invitation. Any information you provide will remain strictly confidential and will only be shared and used in accordance with the terms contained herein.

For more information regarding our privacy policy, please visit https://www.nbc.ca/privacy-policy.html.

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Additional information is needed to produce your report, please contact us.