LONDON, May 12, 2022 (GLOBE NEWSWIRE) -- In 2019, Canada’s ultra-wealthy population observed an increase in their share of wealth on account of high-performing equity and property markets. Between 2015 and 2019, growth was particularly pronounced in higher wealth bands. However, the pandemic brought the rapid HNW growth to an end. Canadian stock markets were characterized by heightened fluctuations because of falling consumer confidence in the country’s economic performance amid state-induced social distancing restrictions. This resulted in the investor population turning to safe-haven investments to limit their risk exposure.
The Canada Wealth Management Market Research Report offered by GlobalData Plc focuses on the HNW segment. This includes overall affluent market size (both by the number of individuals and the value of their liquid assets) as well as a breakdown of liquid vs. illiquid HNW holdings. The report also provides an analysis of the factors driving liquid asset growth, including a breakdown and forecast of total retail savings and investments split by asset classes including equities, mutual funds, deposits, and bonds.
Key Highlights
- Deposits remained an attractive investment avenue for non-resident investors in the Canada wealth management market in 2020.
- In 2020, Canadian retail investors allocated a significant share of their wealth to property. As retail investors have a lower risk tolerance than more affluent investors, they prefer to focus on safer investments.
- Equities are the second most popular asset class as HNW investors take greater risk for greater reward during the downturn in the Canada wealth management market.
- The most preferred investment channel for Canadian investors across all three affluent classes is that of an investment advisory through a bank, with which they have an investment account.
- Better returns, investment product ranges, and tax efficiency are some of the key drivers for Canadian investors to offshore their wealth.
For detailed insights on the Canadian wealth management market, download a free report sample
Canada Wealth Management Market Segmentation by HNW Asset Allocation
- Equities
- Cash and near-cash
- Bonds
- Property
- Commodities
- Alternatives
In line with investment preferences in the wider region, Canadian HNW investors have seen a strong rise in demand for equity-based investments, despite the heightened volatility witnessed by this asset class due to the crisis caused by the pandemic in 2020. A market crash is a good accumulation opportunity for investors to gather more cheap stocks, with the expectation that the stock valuations will go back up at the time of a market upturn.
For more insights on asset allocation in the Canada wealth management market, download a free report sample
Canada Wealth Management Market Segmentation by HNW Investment Style Preferences
- Placed in advisory mandates
- Placed in discretionary mandates
- Placed in execution only mandates
- Placed via robo-advisor service.
- Not placed with a professional wealth manager
Canadian HNW investors diversify their wealth equally, with advisory mandates having a slight edge over others. While Canadian HNW investors distribute their wealth equally, half of the HNW wealth is invested with advisory and discretionary mandates in anticipation of better returns. This is good news for wealth managers, given that advisory and discretionary mandates attract a more loyal customer base and yield higher fee income.
For more insights on investment style preferences in the Canada wealth management market, download a free report sample
Canada Wealth Management Market Overview
| Key Asset Allocation Preferences | Equities, Cash and Near-Cash, Bonds, Property, Commodities, and Alternatives |
| Key Investment Style Preferences | Placed in Advisory Mandates, Placed in Discretionary Mandates, Placed in Execution Only Mandates, Placed via Robo - Advisor Services, and Not Placed with a Professional Wealth Manager |
Reasons to Buy
- Make strategic decisions using top-level historic and forecast data on Canada’s wealth industry.
- Identify the most promising client segment by analyzing the penetration of affluent individuals.
- Receive detailed insights into retail liquid asset holdings in Canada.
- Understand the changing market and competitive dynamics by learning about new competitors and recent deals in the wealth space.
- Discover the key digital disruptors in the country’s wealth market.
FAQs
What are the key asset allocation preferences for HNW investors in the Canada wealth management market?
equities, cash and near-cash, bonds, property, commodities, and alternatives are the key asset allocation preferences for HNW investors in the Canada wealth management market.
What are the key investment style preferences for HNW investors in the Canada wealth management market?
Placed in advisory mandates, placed in discretionary mandates, placed in execution only mandates, placed via robo - advisor services, and not placed with a professional wealth manager are the key investment style preferences for HNW investors in the Canada wealth management market.
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