Wealth in Canada: Sizing the Market Opportunity 2017 - Research and Markets

DUBLIN--()--Research and Markets has announced the addition of the "Wealth in Canada: Sizing the Market Opportunity 2017" report to their offering.

Wealth in Canada: Sizing the Market Opportunity 2017 analyzes the Canadian wealth and retail savings and investments markets, with a focus on the HNW segment. The report is based on our proprietary datasets.

With the commodities market bust behind it the Canadian wealth market has grown faster than normal, with capital appreciation in mutual funds and equities driving the bounce. However, rapid growth will elude Canada as a tepid recovery in oil and gas along with substantial household debt loads will see slower growth over the rest of the forecast period.

Specifically the report:

  • Sizes the affluent market (both by number of individuals and the value of their liquid assets) using our proprietary datasets.
  • Analyzes which asset classes are favored by Canadian investors and how their preferences impact the growth of the total savings and investments market.
  • Examines HNW clients' attitudes towards non-traditional investments, such as property and commodities.
  • Identifies key drivers and booking centers for offshore investments.
  • Examines the tax landscape in Canada and future implications for investors.

Key Topics Covered:

1. EXECUTIVE SUMMARY

2 SIZING AND FORECASTING THE CANADIAN WEALTH MARKET

Affluent individuals in Canada account for roughly 30% of the adult population

  • Increasingly favorable domestic conditions will drive further expansion in onshore wealth
  • Growth in the number of HNW individuals will be strongest among those with more than $10m in assets

The bulk of Canada's onshore assets are concentrated in the hands of the mass affluent

  • Affluent assets are forecast to grow at a faster clip than the broader market
  • HNW portfolios above $10m in AUM will experience the highest growth

3 DRIVERS OF GROWTH IN THE CANADIAN WEALTH MARKET

Growth picked up in 2016 and will average 5.3% going forward

  • Lower TFSA limits will only modestly affect the growth of the overall retail investments market
  • Deposits and mutual funds form the bulk of the retail wealth market
  • Equities will provide some much-needed firepower behind the retail investment market value growth over the next year

Deposit growth will remain moderate as interest rates languish near zero

  • As cautious investors, Canadians have been drawn to solid bank accounts and other cash products
  • Interest rates will ensure deposit growth remains modest

The retail bond market will reach new heights, driven by stronger appetite and ample supply

The drag from the primary resource sector will diminish, allowing equity and mutual funds to take flight

  • The S&P TSX Composite has recovered from the depths it plumbed at the start of 2016
  • Alternative investment platforms are increasingly tempting Canadians eager to invest in low-cost alternatives
  • Both equities and mutual funds increase much more in value when the market is growing
  • Investors in Canada have used mutual funds to vary an already diversified portfolio
  • 2016 inflows were reduced or negative for most mutual funds, barring bond funds

4 HNW INVESTMENT PREFERENCES

HNW individuals have increased the role of non-traditional investments in their portfolio

  • Hedge funds remain the most popular HNW alternative asset
  • With more protections, REITs will grow as an avenue for property exposure
  • Private equity investment will grow as new fintechs ease many of the barriers to investment

Canadian HNW investors have offshored a substantial proportion of their portfolio

  • Offshore wealth management centers are managing a growing amount of Canadian wealth
  • The huge equity and bond market to the south attracts the bulk of offshore wealth
  • Geographic diversification is the main driver for offshoring wealth
  • Recent CRA tax enforcement has focused on offshore tax avoidance
  • Canadian tax regulations have grown more complex in recent years
  • Proximity, size, and longstanding economic links make the US the main offshore center
  • Canada has pursued a large number of tax agreements with a wide range of partners
  • FATCA had major implications for the Canadian market and stirred considerable controversy
  • Canada signed up for the OECD's CRS in 2015 to help combat tax evasion

5 APPENDIX

For more information about this report visit http://www.researchandmarkets.com/research/fc5s4t/wealth_in_canada

Contacts

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Related Topics: Wealth Management

Contacts

Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Related Topics: Wealth Management