This year’s survey found staffing shortages remain, but are less acute than they were last year when respondents reported stretched teams, a crippling talent shortage, and inadequate support from necessary systems and tools.

While 40 per cent of respondents reported an understaffed internal team in 2022 – with little change in 2023 – only 27 per cent reported the same challenge this year. There was also a drop in the percentage of respondents reporting underdeveloped internal talent and skillsets.

As funds begin to resolve their talent shortage, more than a third of mid-sized and large funds are conducting net hiring increases in risk management and legal/compliance staff.

“We’ve seen their staffing pinch has eased this year, they are less under-staffed and have more of the skillsets they need,” Cullen said. “But they are still looking for more support from asset managers as their portfolios are more complex. They are building strategic relationships with fewer managers but they want deeper relationships with them.”