Productivity, something that is a challenge for many developed economies including Canada, is another point of note for the industry, with adoption of technology and innovation driving gains. And the industry supported 415,230 full time jobs, roughly the equivalent of all the full time jobs in Nova Scotia and representing 2.5% of all full time jobs nationwide.
Delivering for investors
Meeting the demands of modern investors means offering the products they require, including ETFs and DIY investing; the share of investors with financial advisors fell from 69% in 2020 to 61% in 2024.
Responsible investing is also a growing area for Canadian fund managers and the report highlights how these funds have grown from less than $7 billion a decade ago to more than $56 billion in 2023 with further expansion expected in the coming years.
This response to investor demand helped revenue streams total $42.6 billion in 2023, even as investors paid significantly less in mutual fund fees over the last decade with average mutual fund MER for long-term funds falling to 1.47% in 2023 from 2.06% in 2013, a 29% decrease.
The report, Funding the Future: The Economic Impact of Canada’s Investment Funds Industry, notes that Canadians are relying more on private retirement savings to fund their post-work years.