HNWI Asset Allocation in Canada 2014

Published: Dec, 2014 | Pages: 67 | Publisher: WealthInsight
Industry: Wealth Management | Report Format: Electronic (PDF)


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 2008 (the peak before the global financial crisis) and the end of 2013. This enables us to determine how well the country's HNWIs have performed through the crisis.
Summary
This report provides the latest asset allocations of Canada HNWIs across 13 asset classes. The report also includes projections of the volume, wealth and asset allocations of Canada HNWIs to 2018 and a comprehensive and robust background of the local economy.
Scope
 Independent market sizing of Canada HNWIs across five wealth bands

 HNWI volume and wealth trends from 2009 to 2013

 HNWI volume and wealth forecasts to 2018

 HNWI and UHNWI asset allocations across 13 asset classes 

 Insights into the drivers of HNWI wealth
Reason 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 2018.
Key Highlights
 In 2013, equities was the largest asset class for Canadian HNWIs with 29.5% of total HNWI assets, followed by business interests with 25.4%, real estate with 20.2%, fixed-income with 11.5%, alternatives with 7.7%, and cash and deposits with 5.8%.

 Equities, alternatives and business interests recorded growth at respective review-period rates of 62%, 46% and 44%. 

 Alternative assets held by Canadian HNWIs increased during the review period, going from 7.6% of total HNWI assets in 2009 to 7.7% in 2013. HNWI allocations to commodities increased from 1.4% of total assets in 2009 to 1.8% in 2013. 

 Allocations in commodities are expected to decline over the forecast period, reaching 1.3% of total HNWI assets by 2018, as global liquidity tightens from an expected drop in demand from China for raw materials, which will cause global commodity prices to flatten out.

 In 2013, Canadian HNWI liquid assets amounted to US$764.9 billion, representing 46.8% of wealth holdings.

 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 Social Background
3.4 Benchmarking Canadian Wealth in Context
3.4.1 Distribution of wealth in Canada
3.5 HNWI Volume and Wealth Trends
4 Analysis of Canadian HNWI Investments
4.1 Analysis by Asset Class
4.1.1 Trends in alternative assets
4.1.2 Trends in 'art, wine and wheels'
4.1.3 Trends of investments in real estate
4.1.4 Trends of investments in cash and deposits
4.1.5 Trends of investments in fixed income
4.1.6 Investment trends in equity
4.1.7 Investments trends in business interests
4.2 Analysis of Foreign Investments
4.2.1 Investments in Europe
4.2.2 Investments in North America (including the US, Mexico and the Caribbean)
4.2.3 Investments in Asia-Pacific
4.2.4 Investments in Central and South America
4.2.5 Investments in the Middle East
4.2.6 Investments in Africa
4.3 Alternative Breakdown: Liquid vs Investable Assets
4.4 Analysis of Canadian UHNWI Investments
5 Appendix
5.1 Additional Components of the Wealth Sector in Canada
5.1.1 Philanthropy
5.1.2 Demand for intergenerational wealth transfer
5.1.3 Human resource availability for the wealth management industry
5.2 Tax Regulations
5.3 Regulations Related to Immigration, Investment and Employment
5.4 Key Drivers
5.4.1 CAD to US$ exchange rate
5.4.2 Real GDP growth
5.4.3 Per capita GDP
5.4.4 Domestic market capitalization
5.4.5 Commodity index
5.4.6 Foreign direct investments - inflow and outflow
5.4.7 Inflation rate
5.4.8 Interest rate
5.4.9 Balance of payments
5.4.10 Government debt
5.4.11 Stock market performance
5.5 Wealth Breakdowns
6 About WealthInsight


List of Tables
Table 1: HNWI Wealth Band and Group Definitions
Table 2: Cities in Canada by Population (Volume), 2013
Table 3: Canadian Allocations of HNWI Assets (%), 2009-2018
Table 4: Canadian HNWI Holdings Growth (%), 2009-2018
Table 5: Canadian HNWI Alternative Asset Composition (%), 2009-2018
Table 6: Canadian HNWI Trends of Investments in Alternative Assets (%), 2009-2018
Table 7: Canadian Trends in 'Art, Wine and Wheels', 2009-2013
Table 8: Global Prime Real Estate Prices per m2 (US$), 2012
Table 9: Canadian HNWI Foreign Investment Allocations (%), 2009-2018
Table 10: Canadian HNWI Liquidity Breakdown (US$ Billion), 2009-2018
Table 11: Canadian HNWI Liquidity Breakdown (%), 2009-2018
Table 12: Canadian UHNWI Allocations and Share of HNWI Assets (%), 2013
Table 13: Canadian Income Tax Bands (CAD), 2013-2014
Table 14:CAD per US$ Exchange Rate, 2009-2018
Table 15: CanadianReal GDP Growth (%), 2009-2018
Table 16:CanadianGDP per Capita (US$), 2009-2018
Table 17: CanadianDomestic Market Capitalization (US$ Billion),2009-2013
Table 18: CanadianCommodity Indices, 2009-2018
Table 19: CanadianForeign Direct Investment (US$ Billion), 2009-2018
Table 20: CanadianInflation Rate (%), 2009-2018
Table 21: CanadianMoney Market Rate (%), 2009-2018
Table 22: CanadianBalance of Payments (US$ Billion), 2009-2013
Table 23: CanadianGovernment Debt as a Percentage of GDP, 2009-2018
Table 24: CanadianStock Market Performance, 2009-2013
Table 25: CanadianHNWI Wealth vs GDP Ratio, 2009-2018
Table 26: Canada - Appendix One
Table 27: Canada - Appendix Two