Funding the Future: The Economic Impact of Canada’s Investment Funds Industry—September 2024

Funding the Future: The Economic Impact of Canada’s Investment Funds Industry—September 2024

Canadian
Pages:23 pages24 min read

Author: Alan Chaffe, Alishba Rasheed, Anthony Landry, Elise Nelson

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Canada’s investment funds industry plays a vital role in the economy. In 2023, the industry contributed $48.1 billion to Canada’s GDP and supported over 415,000 jobs. The industry has demonstrated resilience despite recent economic challenges, maintaining robust asset levels. Trends such as the rise of ETFs, DIY investing, and responsible investing indicate a shift in investor preferences, highlighting the industry’s adaptability and continued importance in Canada’s economic landscape.

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In this report, we examine the economic impact of Canada’s investment funds industry. Investments managed by the investment funds industry have grown substantially over the past decade. How important is the sector to gross domestic product, employment, wages, and tax revenues? How have preferences for mutual funds and ETFs evolved over the past few years? What other trends are influencing Canadians’ investment decisions? And how does the industry’s performance compare to all industries in Canada?

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Key findings
The role of investment funds
About the industry
Economic impact
Conclusion
Appendix A—Data and methodology
Appendix B—Additional tables
Appendix C—Glossary of terms
Appendix D—Bibliography

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