Canadian Asset Management Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2021 |
| Market Size (2023) | USD 4.57 Trillion |
| Market Size (2028) | USD 5.60 Trillion |
| CAGR (2023 - 2028) | 4.14 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Canadian Asset Management Market Analysis
The Canada Asset Management Market size in terms of assets under management value is expected to grow from USD 4.57 trillion in 2023 to USD 5.60 trillion by 2028, at a CAGR of 4.14% during the forecast period (2023-2028).
Retail investment is gaining a share in Canada, and the rising share of the market and the increasing sophistication of retail investors present asset managers with an opportunity worth monitoring. This trend is expected to continue over the next five years, with growth forecast at 9% annually.
Certain active categories also generated strong asset growth in 2020, including large-cap equity funds, government-focused fixed-income funds, money market funds, and specialized products. Even with a global pandemic, a lockdown-induced recession, and the specters of economic malaise and growing inequality, the total AUM in Canada's investment fund industry grew by more than USD 2 billion. From a sales perspective, mutual funds saw net sales of USD 31 billion, an increase of 83% over the previous year, while ETF net sales reached USD 41.5 billion on the back of 48% Y-o-Y growth. Gross sales for mutual funds amounted to USD 300 billion, a historical record.
Canadian investment managers have been investing in alternatives much before the counterpart countries hopped onto the bandwagon due to low-interest rates and volatile public markets. The fintech market in Canada is also growing at a fast pace, aiding the overall growth of the asset management industry. The year 2020 was a transformative year for the Canadian asset management industry through shifting consumer attitudes, a growing competitive landscape, and the COVID-19 pandemic.
Events of 2020 put Canadian asset managers on alert. Additionally, though the industry has shown its trademark resilience, homegrown leaders continue to feel the pressure of mounting competition, consumer shifts, and rippling impacts of the global pandemic. Big asset managers are looking at expanding into alternatives and low-cost beta products to the point where many players have gone down the route of partnering with a hedge fund or private equity managers on the alpha side and looking into ETF-style platforms on the beta site.
The industry's relationship with technology has also brightened, even if familiar uncertainties linger. While organizations are becoming more confident and adept in adopting the likes of blockchain, bots, data analytics, and artificial intelligence (AI), reservations persist as to how these resources will pay back their investments and how organizations can mitigate their potential risks. Moreover, considering that there is always a new competitor willing to look beyond these reservations, organizations are feeling the pressure to make a decision or fall behind.
Canadian Asset Management Market Trends
This section covers the major market trends shaping the Canada Asset Management Market according to our research experts:
The Growth of Responsible Investment Fund in Canada
- Responsible investment fund assets grew by 55% in 2020 compared to 11% growth for the fund industry overall. Responsible investment (RI) has taken its place as the predominant investment approach among Canadian investors. Assets in Canada being managed using at least one RI strategy increased to USD 3.2 trillion, compared to USD 2.1 trillion at the end of 2017. This corresponds to a growth of 48.5% for RI AUM over a two-year period, equivalent to 21.9% annualized growth over two years. Responsible investing comprises a majority of Canada’s professionally managed assets, accounting for 61.8% of all Canadian AUM. This is a larger share of the overall market than the previous years, when RI assets attained a milestone of 50.6% of the Canadian investment industry.
- The rising demand for RI among individual investors is being met with greater availability and diversity of retail RI products as longer-standing RI firms expand their product offerings and newer entrants to the space launch RI products. Assets in designated RI retail mutual funds have increased to USD 15.1 billion from USD 11.1 billion two years prior, representing a growth of 36% over two years. Meanwhile, assets in exchange-traded funds (ETFs) managed under RI strategies have more than doubled over the last two years, from USD 240.6 million to USD 654.9 million.
Exchange Traded Funds and MF in Canada
- Canada’s exchange-traded fund industry reached quite the milestone last week, with net sales surpassing mutual fund sales for the first time in the country’s history. In 2019, ETFs were brought in USD 18.7 billion compared to USD 7.8 billion for mutual funds. Canadian ETF assets have climbed by 74% since 2015, but with only five banks and a handful of investment firms holding most Canadian assets. Also, since 2015, mutual fund assets have also increased by about 74%, a huge number considering the size of the industry.
- Assets invested in ETFs and ETPs listed globally reached a record USD 9.35 trillion at the end of the first half of 2021, says ETFGI. ETFs and ETPs listed globally gathered net inflows of USD 88.5 billion during June, bringing year-to-date net inflows to a record USD 660.73 billion, which is higher than the prior record of USD 293.69 billion gathered at this point last year.
- The Canadian ETF space could reach another all-time high in 2021 as post-COVID-19 economic opportunities and risks, along with product innovation, spur continued demand among investors. Besides shorter fixed income, there are also ETFs that invest in Treasury Inflation-protected Securities (TIPS), which can increase in value as inflation rises or senior loan–based ETFs that protect investors from rising interest rates.
Canadian Asset Management Industry Overview
The Canadian asset management market is highly competitive, with the presence of major international players. The market studied presents opportunities for growth during the forecast period, which is expected to further drive the market competition. With multiple domestic players holding significant shares, the market studied is competitive.
Canadian Asset Management Market Leaders
RBC Group
TD Asset Management Inc.
BlackRock Asset Management Canada Ltd
CIBC Asset Management Inc.
Fidelity Canada Institutional
CI Investments Inc.
Mackenzie Investments
1832 Asset Management LP
*Disclaimer: Major Players sorted in no particular order
Canadian Asset Management Market News
- Fixed-income markets were disrupted at the beginning of the COVID-19 crisis. As whole industries temporarily shut down, businesses and households ran down their savings or needed credit to survive income losses. As volatility increased, portfolio managers sold securities to manage their leveraged exposures or meet actual and anticipated margin calls and redemption requests. In financial markets, a substantial part of the demand for money comes from asset managers.
- The asset management industry had grown relative to the stock of liquid assets held by Canadian banks, and their demand for money during the COVID-19 crisis was considerable. At the height of the crisis, it became costly and difficult for investors and asset managers to sell the securities they were holding to meet the demand for money.
Canadian Asset Management Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.1.1 Macro-economic Analysis of Canada (Disposable Household Income Levels, Savings and Investment Patterns, Canada Population by Income Group, etc.)
4.1.2 Insights into Asset Allocation of Population of Various Income and Age Groups in Canada
4.2 Market Drivers
4.3 Market Restraints
4.4 Technological Innovations
4.5 Industry Policies and Government Regulations
4.6 Insights into Various Trends Shaping the Asset Management Industry in Canada
4.7 Asset Management Process Flow
4.8 Insights into Fee Structure and Operating Cost**
4.9 Impact of COVID 19 on the Market
5. MARKET SEGMENTATION
5.1 Asset Class
5.1.1 Equity
5.1.2 Fixed Income
5.1.3 Alternative Investment
5.1.4 Hybrid
5.1.5 Cash Management
5.2 Source of Funds
5.2.1 Pension Funds and Insurance Companies
5.2.2 Individual Investors (Retail+ High Net Worth Clients)
5.2.3 Corporate Investors
5.2.4 Other Sources (Government, Trust Funds, and Others)
5.3 Type of Asset Management Firms
5.3.1 Large Financial Institutions/Bulge Brackets Banks
5.3.2 Mutual Funds and ETFs
5.3.3 Private Equity and Venture Capital
5.3.4 Fixed Income Funds
5.3.5 Hedge Funds
5.3.6 Other Types
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview (includes M&A Deals And Market Shares)
6.2 Company Profiles of Leading Managers
6.2.1 RBC Group
6.2.2 TD Asset Management Inc.
6.2.3 BlackRock Asset Management Canada Ltd
6.2.4 CIBC Asset Management Inc.
6.2.5 Fidelity Canada Institutional
6.2.6 CI Investments Inc. (including CI Institutional Asset Management)
6.2.7 Mackenzie Investments
6.2.8 1832 Asset Management LP (Scotiabank)
6.2.9 Manulife Asset Management Ltd
6.2.10 Brookfield Asset Management Inc.*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Canadian Asset Management Industry Segmentation
Asset management is one of the most widely demanded markets as people are adopting digitalization. A complete background analysis of the Canadian asset management market includes an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles in the report. The Canadian asset management market covers different segments of asset management, like fixed income, equities, pension, alternative and hybrid funds, and insights into return generated by different asset classes and asset management process flow.
| Asset Class | |
| Equity | |
| Fixed Income | |
| Alternative Investment | |
| Hybrid | |
| Cash Management |
| Source of Funds | |
| Pension Funds and Insurance Companies | |
| Individual Investors (Retail+ High Net Worth Clients) | |
| Corporate Investors | |
| Other Sources (Government, Trust Funds, and Others) |
| Type of Asset Management Firms | |
| Large Financial Institutions/Bulge Brackets Banks | |
| Mutual Funds and ETFs | |
| Private Equity and Venture Capital | |
| Fixed Income Funds | |
| Hedge Funds | |
| Other Types |
Canadian Asset Management Market Research FAQs
How big is the Canada Asset Management Market?
The Canada Asset Management Market size is expected to reach USD 4.57 trillion in 2023 and grow at a CAGR of 4.14% to reach USD 5.60 trillion by 2028.
What is the current Canada Asset Management Market size?
In 2023, the Canada Asset Management Market size is expected to reach USD 4.57 trillion.
Who are the key players in Canada Asset Management Market?
RBC Group, TD Asset Management Inc., BlackRock Asset Management Canada Ltd, CIBC Asset Management Inc., Fidelity Canada Institutional, CI Investments Inc., Mackenzie Investments and 1832 Asset Management LP are the major companies operating in the Canada Asset Management Market.
Canadian Asset Management Industry Report
Statistics for the 2023 Canadian Asset Management market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canadian Asset Management analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
