The number of high net worth individuals (HNWIs) in Canada is on the rise, according to an RBC Wealth Management report released June 18.
HNWIs are defined as those with investible assets of US$1 million or greater, not including primary residences, collectibles or consumer durables.
In 2013, there were 320,000 HNWIs in the country – an increase of 7.2% from the year before.
The total value of the wealth held by all these individuals grew by 9.1% to US$979 billion. This growth, said CIBC, was related to strong performance of the economy, equity markets and real estate.
More of these wealthy Canadians are focused on preserving their wealth than increasing it (31.4% versus 24.8%, respectively).
This growth in the percentage of HNWIs in the country is well below the global average growth of 15% in 2013, which translates into an increase in the number of HNWIs of 1.76 million people worldwide.
Around the world, the highest number of HNWIs are found in North America, but the gap is narrowing as more individuals in Asia Pacific are being added to the group. A total of 4.33 million North Americans are HNWIs, compared with 4.32 million in Asia Pacific.
“Overall, 2013 was another strong year for the high net worth market, with surging equity markets and improving economies contributing to double digit growth in both population and wealth levels,” said , RBC Wealth Management & RBC Insurance group head M. George Lewis.
“Looking at longer term growth trends, nearly 40% of the current level of high net worth wealth has been created in the past five years alone.”
