Mutual fund industry adds billions to Canada's economy
OTTAWA, Oct. 7, 2013 /CNW/ - The mutual fund industry contributed $17 billion to Canada's economy in 2012, according The Conference Board of Canada report, Making Dollars and Sense of Canada's Mutual Fund Industry: An Economic Impact Analysis.
"Beyond helping Canadians save for retirement and providing capital for business investment, the mutual fund industry makes a significant contribution to the economy," said Pedro Antunes, Director, National and Provincial Forecast and co-author of the report. "Last year, the industry directly added $5.8 billion to the economy— slightly less than aerospace manufacturing, but significantly more than the forestry and logging sector—and supported 192,600 jobs."
When accounting for its indirect and induced impacts, the total economic
footprint of the mutual fund industry was $17 billion in 2012, one per
cent of Canada's total gross domestic product (GDP).
The value of GDP directly attributable to the mutual fund industry is
slightly less than aerospace manufacturing, but significantly more than
the forestry and logging sector.
The industry directly employs more than 63,000 people and supports
The mutual fund industry has grown substantially over the past two decades. With the gradual shift from defined benefit pension plans to defined contributions, mutual funds have become one of the main channels Canadians use to save for retirement. The value of assets under management in the mutual fund industry grew from less than $100 billion before 1993 to $926 billion in August 2013.
Canada's mutual fund industry directly added $5.8 billion to the Canadian economy and employed over 63,200 full-time workers in 2012. However, the industry's economic impact extends beyond its direct contribution to GDP. For every $1 million generated by the mutual fund industry, it creates an additional $1.3 million in indirect benefits. For example, activity in the mutual fund sector creates subsequent demand for legal and accounting services.
Directly and indirectly, the industry created $12.6 billion in household income in 2012. The income resulting from the mutual fund industry's economic activity also improved the federal government balances by $3.9 billion and provincial government balances by $3.1 billion.
The report, Making Dollars and Sense of Canada's Mutual Fund Industry: An Economic Impact Analysis, was funded by The Investment Funds Institute of Canada (IFIC) and is available at www.e-Library.ca
SOURCE Conference Board of Canada