Timetric Wealth Reports

(Canada)

Canada 2013 Wealth Book: Land of the Tar Sands

Synopsis

  • This report is the result of WealthInsight’s extensive research covering the high net worth individual (HNWI) population and wealth management market in Canada.
  • The report focuses on HNWI performance between the end of 2007 (the peak before the global financial crisis) and the end of 2012. This enables us to determine how well the country's HNWIs have performed through the crisis.

Overview

Executive summary

There are just over 422,000 HNWIs and over 4,000 UHNWIs in Canada in 2012. This report reviews the performance and asset allocations of HNWIs and Ultra HNWIs in Canada, and highlights top-performing cities. It also includes an evaluation of the local wealth management industry.



Scope

  • Independent market sizing of Canadian HNWIs across five wealth bands
  • HNWI volume, wealth and allocation trends from 2007 to 2012
  • HNWI volume, wealth and allocation forecasts to 2017
  • HNWI and UHNWI asset allocations across 13 asset classes
  • Number of UHNWIs in each state and all major cities
  • Fastest growing cities and states for UHNWIs (2007-2012)
  • Number of wealth managers in each city
  • City wise ratings of wealth management saturation and potential
  • Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in Canada
  • Size of the Canadian wealth management industry
  • Detailed wealth management and family office information
  • Insights into the drivers of HNWI wealth

Key highlights

• There are just over 422,000 HNWIs in Canada in 2012. These HNWIs hold US$1,529 billion in wealth which equates to 26% of total individual wealth held in the country.
• At the end of 2012, Canadian HNWIs held 26% (US$372 billion) of their wealth outside their home country, which is in line with the worldwide norm of between 20% and 30%.
• Ontario is the largest state for Canadian HNWIs, accounting for 47% of total HNWIs with just over 198,000 individuals. There are also sizable HNWI populations in Quebec (81,800 HNWIs), Alberta (58,700 HNWIs), British Columbia (49,700 HNWIs) and Manitoba (10,500 HNWIs).
• Toronto is the largest city for Canadian HNWIs, accounting for 28% of total HNWIs with just over 116,000 individuals. There are also sizable HNWI populations in Montreal (52,700 HNWIs), Calgary (32,100 HNWIs), Vancouver (25,600 HNWIs) and Edmonton (14,100 HNWIs).
• The global private banking industry was estimated to have AuM of just over US$19.3 trillion at the end of 2012. The Canadian wealth management sector accounted for approximately US$600 billion of this, equating to 3.1% of the global total.



Reasons to buy

  • The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the database comprises dossiers on over 60,000 HNWIs from around the world.
  • The Intelligence Center also includes tracking of wealth and liquidity events as they happen and detailed profiles of major private banks, wealth managers and family offices in each market.
  • With the Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.
  • Report includes comprehensive forecasts to 2017.
  • Also provides detailed information on UHNWIs in each major city.

Table of contents

1 Introduction
1.1 Details of this Report
1.2 Definitions
2 Executive Summary
3 Wealth Sector Fundamentals
3.1 Political Background
3.2 Economic Background
3.3 Benchmarking Canada Wealth in Context
3.3.1 World Statistics
3.3.2 Distribution of wealth in Canada
3.4 HNWI Volume and Wealth Trends
4 Findings from the WealthInsight HNWI Database
4.1 Trends in HNWI Wealth to 2017
4.1.1 HNWI trend analysis
4.1.2 Trends of the wealth bands
4.1.3 Demographic breakdown of HNWI
4.1.4 HNWIs – job titles
4.1.5 HNWIs – industry breakdown
4.1.6 HNWIs – industry performance
4.1.7 HNWI breakdown by city
4.1.8 HNWIs – city performance
4.1.9 HNWIs – city population densities
4.1.10 HNWIs – city forecasts
4.1.11 HNWI breakdown by State
4.1.12 HNWIs – state performance
4.1.13 HNWIs – state population densities
4.2 UHNWIs
4.2.1 UHNWI volume trend analysis
4.2.2 UHNWI wealth trend analysis
4.2.3 Demographic breakdown of UHNWIs
4.2.4 UHNWIs – industry breakdown
4.2.5 UHNWIs – city breakdown and performance
4.3 UHNWIs – Billionaires
4.3.1 Billionaire volume trend analysis
4.3.2 Billionaire wealth trend analysis
4.3.3 Billionaire per capita net worth trend analysis
4.3.4 List of billionaires
4.4 UHNWIs – Centimillionaires
4.4.1 Centimillionaire volume trend analysis
4.4.2 Centimillionaire wealth trend analysis
4.4.3 Centimillionaire per capita net worth trend analysis
4.5 UHNWIs – Affluent Millionaires
4.5.1 Affluent millionaire volume trend analysis
4.5.2 Affluent millionaire wealth trend analysis
4.5.3 Affluent millionaire per capita net worth trend analysis
4.6 Core HNWIs
4.6.1 Core HNWI volume trend analysis
4.7 Core HNWIs – Mid-Tier Millionaires
4.7.1 Mid-tier millionaire volume trend analysis
4.7.2 Mid-tier millionaire wealth trend analysis
4.7.3 Mid-tier millionaire per capita net worth trend analysis
4.8 Core HNWIs – Lower-Tier Millionaires
4.8.1 Lower-tier millionaire volume trend analysis
4.8.2 Lower-tier millionaire wealth trend analysis
4.8.3 Lower-tier millionaire per capita net worth trend analysis
5 Analysis of Canadian HNWI investments
5.1 Analysis by Asset Classes
5.1.1 Trends in Alternative Assets
5.1.2 Trends in “Art, Wine and Wheels”
5.1.3 Trends of Investments in Real Estate
5.1.4 Trends of Investments in Cash and Deposits
5.1.5 Trends of investments in fixed income
5.1.6 Trends of investments in equity
5.1.7 Trends of investments in business interest
5.2 Analysis of Foreign Investments
5.2.1 Investments in North America (including the USA, Mexico & the Caribbean)
5.2.2 Investments in Europe
5.2.3 Investments in Asia Pacific
5.2.4 Investments in Latin America
5.2.5 Investments in Africa
5.3 Alternative Breakdown: Liquid vs. Investable Assets
5.4 Analysis of Canadian Ultra HNWI Investments
6 Competitive Landscape of the Wealth Sector
6.1 Competitive landscape
6.1.1 Private Banks
6.1.2 Wealth Managers
6.1.3 Family offices
6.1.4 Financial Advisors
6.2 Developments in Canada’s Private Banking Industry
6.3 Canada’s Wealth Management Industry – Clientele Model and Maturity
6.4 Behavioral Mapping of Wealth Management and Private Banking Industry in Canada
6.5 Porter’s Five Force Analysis – Wealth Management Industry in the Canada
6.6 Financial Services Review
6.6.1 Retail banks
6.6.2 Fund Management
7 Appendix
7.1 Additional Components of the Wealth Sector in Canada
7.2 Regulations on Taxes
7.3 Regulations Related to Immigration, Investment and Employment
7.4 Key Drivers
7.4.1 LC to US$ exchange rate
7.4.2 Real GDP growth
7.4.3 Per capita GDP
7.4.4 Domestic market capitalization
7.4.5 Commodity index
7.4.6 Foreign direct investment
7.4.7 Inflation rate
7.4.8 Interest rate
7.4.9 Balance of payments
7.4.10 Government debt
7.4.11 Stock market performance
7.5 Wealth Breakdowns
8 About WealthInsight

List of tables

Table 1: HNWI Wealth Band and Group Definitions
Table 2: CANADA: Regions in Canada, 2012
Table 3: CANADA: Largest 10 Cities in Canada, 2012
Table 4: CANADA: Fastest growing cities in Canada by population, 2006 - 2011
Table 5: CANADA: Fastest growing cities in Canada (economic growth), 2011 - 2012
Table 6: CANADA: HNWIs – Volume Distribution Wealth Pyramid, 2012
Table 7: CANADA: HNWIs – Wealth Distribution Wealth Pyramid (% share), 2012
Table 8: CANADA: HNWI Sector Performance, 2007–2012
Table 9: CANADA: HNWIs – Cities, 2012
Table 10: CANADA: HNWIs in Top Cities, 2007–2012
Table 11: CANADA: HNWIs - Population Density in Major Cities, 2012
Table 12: CANADA: HNWI in Top Cities, 2007–2017
Table 13: CANADA: HNWI Growth Rates for Top Cities, 2007–2017
Table 14: CANADA: HNWIs – States, 2012
Table 15: CANADA: HNWIs – State Performance, 2007 - 2012
Table 16: CANADA: HNWIs - Population Density in Major Cities, 2012
Table 17: CANADA: UHNWI –Gender Performance, 2007- 2012
Table 18: CANADA: UHNWI –Source of Wealth (%), 2012
Table 19: CANADA: UHNWIs in Top Cities, 2007–2017
Table 20: CANADA: UHNWI Growth Rates for Top Cities, 2007–2017
Table 21: CANADA: Billionaires – Market Overview (US$ Billions) 2007–2017
Table 22: CANADA: Top 10 Billionaires (US$ billions), 2012
Table 23: CANADA: Billionaire Wealth Growth, 2007−2012
Table 24: CANADA: Centimillionaires – Market Overview, 2007–2017
Table 25: CANADA: Affluent Millionaires – Market Overview, 2007–2017
Table 26: CANADA: Mid-Tier Millionaires – Market Overview, 2007–2017
Table 27: CANADA: Lower-Tier Millionaires – Market Overview, 2007–2017
Table 28: CANADA: Allocations of HNWI Assets, 2007−2017
Table 29: CANADA: HNWIs − Holdings Growth (%), 2007–2017
Table 30: CANADA: HNWIs – Trends of Investments in Alternative Assets (%), 2007–2017
Table 31: CANADA: HNWIs – Alternative Asset Composition (%), 2007–2017
Table 32: CANADA: Trends in “Art, Wine and Wheels”, 2007–2012
Table 33: CANADA: Real Estate Performance in Major Cities, 2007–2012
Table 34: CANADA: Residential real estate prices, US$ terms, 2012
Table 35: GLOBAL: Prime real estate prices per square meters, US$ terms, 2012
Table 36: GLOBAL: Prime International Cities, US$ Terms, 2007–2012
Table 37: CANADA: HNWIs - % Foreign allocation, 2007–2017
Table 38: CANADA: HNWIs – Liquidity Breakdown (US$ Billion), 2007–2017
Table 39: CANADA: HNWIs – Liquidity Breakdown (%), 2007–2017
Table 40: CANADA: UHNWIs – Allocations and Share of HNWI Assets, 2012
Table 41: CANADA: Major Private Banks by local AuM, 2012
Table 42: CANADA: Other Private Banks by global AuM, 2012
Table 43: CANADA: Wealth Managers Per City
Table 44: CANADA: Largest Wealth Managers, 2012
Table 45: CANADA: Other Wealth Managers, 2012
Table 46: CANADA: Family Offices, 2012
Table 47: CANADA: Financial Advisors by City, 2012
Table 48: CANADA: Wealth Management Industry – Recent M&A Activity
Table 49: CANADA: Income Tax Brackets, 2012
Table 50: CANADA: VAT by State, 2012
Table 51: CANADA: Provincial corporate tax rates, 2012
Table 52: CANADA: LC to USD Exchange Rate, 2007–2017
Table 53: CANADA: Real GDP Growth, 2007–2017
Table 54: CANADA: GDP Per Capita, 2007–2017
Table 55: CANADA: Domestic Market Capitalization (US$ Billions) 2007–2011
Table 56: CANADA: Commodity Indices, 2007–2017
Table 57: CANADA: Foreign Direct Investments (US$ Billions) 2007–2017
Table 58: CANADA: Inflation Rate, 2007–2017
Table 59: CANADA: Money Market Rate, 2007–2017
Table 60: CANADA: Balance of Payments (US$ Billions) 2007-2012
Table 61: CANADA: Government Debt to GDP, 2007–2017
Table 62: CANADA: Stock Market Performance, 2007–2012
Table 63: CANADA: HNWI Wealth vs GDP Ratio, 2007–2017
Table 64: CANADA: Appendix One
Table 65: CANADA: Appendix Two

List of figures

Figure 1: HNWI Wealth Band Definitions
Figure 2: CANADA: Map
Figure 3: CANADA: Asset Price Performance, 2007-2012
Figure 4: CANADA: HNWI Performance, 2007–2017
Figure 5: CANADA: Canadian HNWIs vs the World
Figure 6: CANADA: HNWIs – Growth Factor Correlation, 2007–2012
Figure 7: CANADA: HNWIs – Volume Distribution Wealth Pyramid, 2012
Figure 8: CANADA: HNWIs – Wealth Distribution Wealth Pyramid (% share), 2012
Figure 9: CANADA: HNWIs – Age Distribution, 2012
Figure 10: CANADA: HNWIs – Job Titles, 2007–2012
Figure 11: CANADA: HNWIs – Distribution by Industry, 2012
Figure 12: CANADA: HNWIs – City Performance, 2007–2012
Figure 13: CANADA: HNWIs – City Numbers, 2007–2012
Figure 14: CANADA: HNWIs – City Forecasts, 2012–2017
Figure 15: CANADA: HNWIs – City numbers, 2012–2017
Figure 16: CANADA: UHNWIs – Wealth Share vs Volume Growth, 2007–2012
Figure 17: CANADA: UHNWIs – Volume by Wealth Band, 2007–2017
Figure 18: CANADA: UHNWIs – Wealth by Wealth Band (US$ Billion), 2007–2017
Figure 19: CANADA: UHNWIs – Age Distribution (% Share), 2012
Figure 20: CANADA: UHNWIs – Distribution by Industry, 2012
Figure 21: CANADA: Billionaires – Market Overview, 2007–2017
Figure 22: CANADA: Centimillionaires – Market Overview, 2007–2017
Figure 23: CANADA: Affluent Millionaires – Market Overview, 2007–2017
Figure 24: CANADA: Mid-Tier Millionaires – Market Overview, 2007–2017
Figure 25: CANADA: Lower-Tier Millionaires – Market Overview, 2007–2017
Figure 26: CANADA: HNWIs – Asset Class Composition, 2007–2017
Figure 27: CANADA: HNWIs – Trends in Alternative Assets (in US$ Billion), 2007–2017
Figure 28: CANADA: Trends in “Art, Wine and Wheels”, 2007–2012
Figure 29: CANADA: HNWIs – Foreign Investment Allocation and Growth (%), 2012–2017
Figure 30: CANADA: HNWIs – Global Distribution of Foreign Investments, 2007–2017
Figure 31: CANADA: HNWIs – Liquidity Breakdown (%), 2007-2017
Figure 32: CANADA: UHNWIs – Asset Class Composition, 2007–2017
Figure 33: CANADA: Wealth Management Industry – Maturity Level of Players
Figure 34: CANADA: Wealth Management Industry – Behavioral Mapping, 2012
Figure 35: CANADA: Wealth Management Industry – Five Forces Analysis
Figure 36: CANADA: LC to USD Exchange Rate, 2007–2017
Figure 37: CANADA: Real GDP Growth (%), 2007–2017
Figure 38: CANADA: GDP Per Capita, 2007–2017
Figure 39: CANADA: Domestic Market Capitalization (US$ Billion) 2007–2011
Figure 40: CANADA: Commodity Indices, 2007–2017
Figure 41: CANADA: Foreign Direct Investments (US$ Billion) 2007–2017
Figure 42: CANADA: Inflation Rate, 2007–2017
Figure 43: CANADA: Money Market Rate, 2007-2017
Figure 44: CANADA: Balance of Payments (US$ Billion) 2007-2012
Figure 45: CANADA: Government Debt to GDP, 2007–2017
Figure 46: CANADA: Stock Market Performance, 2007–2012
Figure 47: CANADA: HNWI Wealth vs GDP Ratio, 2007–2017
Figure 48: CANADA: HNWIs – Volume by Wealth Band, 2007–2017
Figure 49: CANADA: HNWIs – Wealth by Wealth Band (in US$ Billion), 2007–2017
Figure 50: CANADA: HNWIs – Wealth Per Capita (in US$ Billion), 2007–2017