Canadian private wealth ecosystem

Part
01
of two
Part
01

Canadian Private Wealth Industry

The top ten investment firms in Canada are Investissement Quebec Fonds de Solidarité rith $890 million, Futura Corporation, E-L Financial Corporation Ltd, CI Financial Corp., Crown Investment Corporation of Saskatchewan, James Richardson & Sons Ltd, Fairfax Financial Holdings Ltd, Caisse de Depot et Placement du Quebec, Onex Corporation. However, we could not resolve a clear picture of the number or names of all firms in Canada that handle investments for families with a worth over $50 million CAD. We have provided some helpful findings below that emerged in the course of our research and that may provide some insight.

Helpful findings

Number of firms that manage the wealth of people or families that have a net worth of $50 million CAD or more.
Number of private or families that have a net worth of $50 million CAD or more in Canada
  • In their article from 2018, Global News stated that Canada’s richest families own as much wealth as 3 provinces combined, according to a report from Canadian Business Magazine.
  • Canada's most wealthy families hold $259 billion in wealth and an estimated of $269 billion in net assets.
  • In an article by CBC Canada News is stated that Canada is the fifth country in the world with more number of people whose net worth is estimated at US$30 million or more.
  • According to CBC's article, "Canada had around 10,840 residents worth $30 million or more including their investable assets in 2017."
  • US $30,000,000USD = $39,801,705.30 CAD (1 CAD = 0.753737 USD , 1 USD = 1.32672 CAD.)

According to Canadian Business, some top richest families in Canada are:
  • Thomson Family, located in Toronto, they run Thomson Reuters, Woodbridge Co. with an estimated revenue of $41.14 billion.
  • Galen Weston, located in Toronto, owner of George Weston, Associated British Foods, Loblaw, Selfridges, Holt Renfrew with an estimated of $13.55 billion in revenue.
  • Rogers Family located in Toronto, owners of Rogers Communications with an estimated revenue of $11.57 billion.
  • Saputo Family Montreal located in Saputo, owner of Transforce with an estimated revenue of $10.41 billion.
  • Desmarais Family, located in Montreal owners of Power Corp. of Canada with an estimated revenue of $8.38 billion.
  • Irving Family Saint John, N.B. | Irving Oil, J.D. Irving $7.38 billion.

Research Strategy

We began our research with North American and Canadian focused business and financial press sources such as Business Chief, Global News, Canadian Business and CBC News, among others. While these sources contained numerous overviews of top firms and investment profiles, none made clear mention of the net worth of investors, nor gave us enough information to make any high-confidence inferences about which firms served high-net-worth families.

Wealth Management Canada's website provided us with a wealth of information about major wealth management companies. We used that information, plus information on the web presences (web sites, press releases, financial disclosure reports, etc.) of these companies to try to build a profile of the major players and to gather a picture of their client bases. However, nothing definitive concerning their clients' family wealth levels emerged from this strategy.

As a final strategy, we attempted to answer the question from the other end, looking at wealth families in Canada and trying to tie them to investment firms, but privacy laws and other barriers prevented us from gathering enough information to resolve a general picture of the investment strategies of wealthy Canadian families.
Part
02
of two
Part
02

Canadian Private Wealth Industry - Segmentation

The firms identified in the previous request were crown corporations, public corporations, holding companies, and private companies. An overview of each company listed is provided below.

Firms Identified in THE Previous REQUEST

Investissement Quebec

  • Investissement Quebec has a revenue of $713.7 million.
  • The current Investissement Québec was created through a merger between the Société générale de financement du Québec and the former Investissement Québec in 2011. It is a government corporation promoting and aiding businesses in and locating to Quebec.
  • Investment Quebec has a board of directors consisting of 12 members including its CEO and President. The company also has a Management Committee.

Fonds de Solidarité FTQ

  • This company has a revenue of $890 million.
  • Fonds de Solidarité FTQ, commonly known as the Fonds, was created by the FTQ, the largest labor union in Quebec, in 1983, for the purpose of supporting small and medium-sized businesses in Quebec.
  • More than half a million Quebecers are shareholder-savers by investing for their retirement with the Fonds.
  • The Fonds is run by a board with nineteen directors which include the President of the Fonds and its CEO. It also has an Executive Committee, a Management Committee, and an Audit Committee.

Futura Corporation

E-L Financial Corporation Ltd

CI Financial Corp

  • This company has a revenue of $1.55 billion.
  • CI Financial is an independent and Canadian-owned wealth management firm and investment company with offices across Canada, the U.S., Asia, and Australia.
  • The company has a nine-member Board of Directors and an eleven-member Executive Management Board.

Crown Investment Corporation of Saskatchewan

James Richardson & Sons Ltd

Fairfax Financial Holdings Ltd

Caisse de Depot et Placement du Quebec

  • This company has a revenue of $16.46 billion.
  • Caisse de Depot et Placement du Quebec manages pension and insurance plans for 41 public and para-public organizations.
  • Caisse de Depot et Placement du Quebec is a public investor, governed by a fifteen-member Board of Directors, an Executive Committee, and other senior executives.

Onex Corporation

Wealth in Canada

  • Canada has around 10,840 people valued at over $30 million, which is considered ultra-rich. Consequently, Canada ranks fifth among countries with the most wealthy citizens.
  • Canada's wealthiest 100 citizens each have a worth over a billion dollars.
  • The 17th Annual World Wealth Report noted that Canadian high net worth individuals (HNWIs) prefer to work with just one financial expert.
  • Canadian millionaires prefer working with a single firm managing their financial products, 54.5% versus 41.1% globally. Canadian HNWIs who work with multiple companies are 13.4% versus 14.4% globally.
  • This survey also found that globally only 61.4% of investors trusted wealth management firms, while for Canadian HNWIs that number was 80%.

Research Strategy

We were unable to find information on how the wealth of people or families in Canada is managed. To find this information we reviewed each website of the companies identified in the first report. Some companies had information on where they invested, but information on who was investing with them was not available. Only the Onex Company makes mention of high-net-worth clients as investors but does not give any information about them. Also, several of these companies were either Crown corporations run by the government or holding companies that do not work directly with clients.
We also reviewed industry publications and news reports from sources such as the CBC, Canada Business, and the Globe and Mail, and found some statistics about wealthy Canadians and wealth management which were included in the findings. However, no specific information on wealth management companies and their clients was found.
We redirected our search to find more firms that handle family office investments and there are several companies across Canada, which were not listed in the previous report. None of these companies gave any information regarding their clients or their incomes. We also found a few companies that were Family Office Investment investors, but no financial information was available from these websites either.






Sources
Sources

From Part 02