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WEALTH ADVISORY SERVICES - CANADA - DECEMBER 2017

Published By :

Mintel

Published Date : Dec 2017

Category :

Banking

No. of Pages : N/A

Old is gold when it comes to wealth with over-65s being the most affluent and having the highest ownership of investments.

Table of Contents

OVERVIEW
Definition
Regional classifications
Income
Glossary
EXECUTIVE SUMMARY
The issues
Around half of Canadians have a TFSA and/or an RRSP
Figure 1: Product ownership, October 2017
Around half of investors use a retail bank as their main investment company
Figure 2: Type of financial institution used for investments, October 2017
Most investors not enamoured with passive investing
Figure 3: Attitudes towards investing (% agree), October 2017
Performance, fees and product offerings are the top reasons for attrition
Figure 4: Reasons for attrition, October 2017
Willingness to use robo-advisors strongly varies by age and gender
Figure 5: Agreement with statement on use of robo-advisors, by age and gender, October 2017
The opportunities
Robo-advisors: immense potential but could be challenges for full-service providers
Around seven in 10 Asian Canadians use banks/bank wealth management subsidiaries
Figure 6: Type of financial institution used for investments (select), Asian Canadians vs overall, October 2017
One in five millionaires use a bank-owned discount brokerage
Figure 7: Type of financial institution used (select), by amount of investments, October 2017
What it means
MARKET FACTORS – WHAT YOU NEED TO KNOW
Diminished capacity among seniors is a consequence of an ageing population
Canada will become increasingly diverse
Usage of digital investment tools including robo-advisors is low
Household debt, home prices biggest risk to Canadian economy
MARKET FACTORS
Diminished capacity among seniors a consequence of ageing population
Figure 8: Canadian population, by age, 2016
Canada will become increasingly diverse
Usage of digital investment tools including robo-advisors is low
Figure 9: Awareness and usage of digital financial products and services, March 2017
Digital financial advice with a female focus: WorthFM, Ellevest and Joy
Household debt, home prices biggest risk to Canadian economy, according to the Bank of Canada
Canada’s growth expected to top the G7 this year as OECD boosts forecast
KEY PLAYERS – WHAT YOU NEED TO KNOW
Canada's first artificial intelligence Exchange-Traded Fund hits the market
Canada’s first Bitcoin fund launched
Wealthsimple launches robo-advisor service in the UK
National Bank makes a $6 million investment in Nest Wealth
RBC and others join the robo-advisory bandwagon
INDUSTRY DEVELOPMENTS AND INNOVATIONS
Canada's first artificial intelligence Exchange-Traded Fund hits the market
Canada’s first Bitcoin fund launched
Robo-advisors
Wealthsimple launches robo-advisor service in UK, its second international market
Robo-advisor Nest Wealth branches out in search of scale
National Bank makes a $6 million investment in Nest Wealth
RBC and others join the robo-advisory bandwagon
MARKETING CAMPAIGNS
CIBC paints a picture
Figure 10: Artist Jen Mann captures the essence of CIBC Private Wealth Management client Monika Deol, May 2017
Wealthsimple gift cards
Manulife’s creepy carnival
Figure 11: Carnival, September 2017
Selected campaigns from Mintel Comperemedia
BMO SmartFolio Automated Investing Solutions
Figure 12: BMO online advertisement for SmartFolio, November 2017
Sun Life pitches the value of advice
Figure 13: Sun Life Financial advice online advertisement, November 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Around half of Canadians have a TFSA and/or an RRSP
Around half of investors use a retail bank as their main investment company
One in five millionaires use a bank-owned discount brokerage
More than half do not want advisors to work on commissions
Willingness to use robo-advisors strongly varies by age and gender
Most investors not enamoured with passive investing
Few consumers have changed their primary investment company in the last five years
OWNERSHIP OF INVESTMENTS
One in 20 Canadians have more than $1 million in investments
Figure 14: Breakdown of investments, October 2017
Atlantic Canadians have a generally lower ownership
Men more likely to own some products
Figure 15: Product ownership (select), by gender, October 2017
Around half of Canadians have a TFSA and/or an RRSP
Figure 16: Product ownership, October 2017
Figure 17: Ownership of investment products (selected), by asset level, October 2016
Around one in four Chinese Canadians have stocks and/or mutual funds
Figure 18: Product ownership, Chinese Canadians vs overall population, October 2017
WEALTH MANAGEMENT
Around half of investors use a retail bank as their main investment company
Figure 19: Type of financial institution used for investments, October 2017
One in five millionaires use a bank-owned discount brokerage
Figure 20: Type of financial institution used (select), by amount of investments, October 2017
Men are more likely to use bank-owned discount brokerages, women insurance companies
Figure 21: Type of financial institution used for investments (select), by gender, October 2017
Around seven in 10 Asian Canadians use banks/bank wealth management subsidiaries
Figure 22: Type of financial institution used for investments (select), Asian Canadians vs overall, October 2017
FINANCIAL ADVICE
Almost half of investors use financial advisors
Figure 23: Use of financial advisor, October 2017
Reliance on a financial advisor is higher among the affluent
Figure 24: Use of financial advisor, by affluence, October 2017
Around three in four advised clients trust advisors to act in their best interests
Figure 25: Attitudes regarding financial advice, October 2017
More than half do not want advisors to work on commissions
Figure 26: Attitudes regarding financial advice, October 2017
Two in three believe referrals most effective way to choose an advisor
Figure 27: Attitudes regarding financial advice, October 2017
Younger clients more likely to agree that advisors are useful for those with a large amount of assets
Figure 28: Attitudes regarding financial advice, by age, October 2017
ROBO-ADVISORS
One in four advised clients are willing to use robo-advisors
Willingness to use strongly varies by age and gender
Figure 29: Agreement with statement on use of robo-advisors, by age and gender, October 2017
Robo-advisors: immense potential but could be challenges for full-service providers
INVESTING PREFERENCES
Most investors not enamoured with passive investing
Figure 30: Attitudes towards investing (% agree), October 2017
Discount brokerage customers more likely to prefer passive investments
Figure 31: Attitudes towards investing (% agree), discount brokerage clients vs overall, October 2017
Majority prefer low-risk investments but 35-54s are less likely
Figure 32: Attitudes towards risk tolerance and financial advice, October 2017
Around one in four trust independent advisors more
Figure 33: Attitudes towards investing (% agree), independent investment company clients vs overall, October 2017
Around one in five 18-34s feel investment marketing is male-directed
Figure 34: Attitudes towards investing (% agree), by age, October 2017
ATTRITION
Only around one in eight consumers have changed their primary investment company in the last five years
Figure 35: Changing investment provider (Attrition %), October 2017
Young males more likely to change their investment company
Figure 36: Change of primary investment company, by age and gender, October 2017
Discount brokerage customers more likely to have shifted
Figure 37: Change of primary investment company, by type of financial institution, October 2017
Performance, fees and product offerings are the top reasons for attrition
Figure 38: Reasons for attrition, October 2017
Awareness of investment fees is high among advised clients
Figure 39: Attitudes towards financial advice (% agree), by assets, October 2017
Awareness of fees is lower among general investors
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms

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