Originally published on Technavio:Canada Asset Management Market by Class Type, Component, and Sourcing - Forecast and Analysis 2023-2027

The estimated growth of the Canada asset management market is USD 20.97 billion, with a Compound Annual Growth Rate (CAGR) of 14.57% between 2022 and 2027. The market's expansion hinges on various factors, including the increasing global population of high-net-worth individuals (HNWIs), vendors introducing diversified wealth management services, and a growing demand for alternative investments.

Asset Management Market in Canada Size:

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Market Segmentation:

The equity segment is anticipated to witness significant growth during the forecast period. This segment comprises preferred shares, retained earnings, equity mutual funds, stocks, and private equity investments. The surge in population investments in the capital market, driven by the pursuit of a higher internal rate of return (IRR) and the inclination to diversify income across various asset classes, predominantly propels the growth of the equity segment.

 

Asset Management Market in Canada Size:

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Valued at USD 2,113.80 million in 2017, the equity segment continued its growth trajectory until 2021. Canadian consumers actively engage in the equity market through stock mutual funds, which are managed by professionals with expertise in global economies and other macroeconomic variables. The growth in the equity segment is further fueled by new fund offerings (NFOs) and the increasing trend of investing in equities, driving market growth during the forecast period.

Market Dynamics and Customer Landscape:

The escalating global count of high-net-worth individuals (HNWIs) is a primary driver of market growth, although transaction risks pose potential challenges. The market research and growth report consider data from 2022 as the base year, incorporating key drivers, trends, and challenges. A comprehensive analysis of drivers aids companies in refining marketing strategies for a competitive advantage.

 Key Driver:

The global increase in HNWIs is a pivotal driver of market growth. HNWIs, individuals with a net worth of at least USD 1 million in cash or cash equivalents, require specialized assistance for managing their extensive wealth and investment portfolios. This demographic entrusts wealth managers or advisers with portfolio management, estate planning, asset protection, and tax management. North America witnessed the highest growth rate of around 14% in both the HNWI population and wealth in 2022, showcasing a steady rise in the demand for financial services in Canada.

 

Significant Trend:

The trend of mutual fund asset growth in developing nations is a key trend in the market. Robust equity market performance and net inflows into equity schemes contribute to the increased asset size of the mutual fund sector. Notably, India's mutual fund sector's average assets under management (AAUM) rose by approximately 30%, while the value of assets held by mutual funds for individual investors and institutions exhibited significant growth. This trend underscores the potential opportunities driving market growth during the forecast period.

Major Challenge:

Transaction risks represent a significant challenge in the market. These risks arise when companies engage in financial transactions or maintain accounts in a currency different from their underlying currency. For instance, a Canadian company conducting business in China faces exchange rate risks due to financial transactions in Chinese yuan and financial statements presented in Canadian dollars. Transaction risks result from potential changes in exchange rates before transaction completion, with the duration between transaction and settlement serving as a source of such risks. Forward contracts and options can mitigate transaction risks, but they remain a hindrance to targeting market growth during the forecast period.

 

Key Customer Landscape:

The market forecasting report includes the adoption lifecycle, spanning from the innovator's stage to the laggard's stage. It focuses on adoption rates across different regions based on penetration. Additionally, the market research report considers key purchase criteria and drivers of price sensitivity, aiding companies in evaluating and developing growth strategies.

Asset Management Market in Canada Share by Geography:

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Who are the Major Asset Management Market in Canada Vendors

Vendors adopt various strategies, including strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to fortify their market presence.

Credit Agricole SA:

The company, operating under the brand CPR AM, provides asset management services alongside retail banking, corporate banking, investment banking, private banking, wealth management, and asset management.

 

The market growth and forecasting report includes detailed analyses of the competitive landscape, featuring information about 15 market vendors.

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The Canadian asset management market navigates challenges and opportunities, with large-cap equity funds, government-focused fixed-income funds, and money market funds remaining prominent among investment managers. Amid low-interest rates and volatile public markets, the industry contends with fintech innovations gaining ground and the rise of alternative investments. The sector witnesses a shift toward ETF-style platforms and technology-driven solutions like blockchain, bots, data analytics, and artificial intelligence, influencing investment decisions. The adaptability of the asset management industry to fintech innovations and diverse investment offerings positions it favorably within the global financial landscape.

The market analysis and report cover revenue growth globally, regionally, and at the country level. The report provides an analysis of the latest market trends and growth opportunities from 2017 to 2027.

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