CFIQ Welcomes Institut du Québec Analysis of Funds Industry
The Quebec funds industry’s total economic footprint was $1.8 billion in 2013
Montréal, QC – June 3, 2015 – The Conseil des fonds d’investissement du Québec (CFIQ), the Quebec voice of The Investment Funds Institute of Canada (IFIC) welcomes Quebec’s Mutual Fund Industry: Assessing the Economic Footprint – a research report released today by the Institut du Québec. The report quantifies the vital economic impacts of the funds industry across Quebec.
“This report concludes that economic activity associated with the funds industry in Quebec has grown much more rapidly than the province’s overall economy, which underscores the economic importance of our sector in the province,” noted Claude Paquin, chair of the board of governors of CFIQ. “The report concludes that the funds sector will continue to grow at a rate higher than the overall Quebec economy,” he added.
Quebecers’ investments in mutual funds and exchange traded funds have soared, achieving annual average growth of nine per cent over nine years – from $80 billion in 2004 to $180 billion in 2013.
The $180 billion in assets managed by the funds industry is particularly impressive when compared to the $200 billion in assets managed by the Caisse de dépôt et placement du Québec. Quebecers are clearly demonstrating trust in the mutual funds industry, choosing to place increasing amounts of their savings into mutual funds. This demonstrates a strong commitment by Quebecers to prepare adequately for retirement.
The impact of this vigorous growth in Quebec’s funds industry is evident in several ways. For example, from 2009-2013, the number of jobs in the Quebec funds industry increased from more than 5,700 to more than 9,100 – a remarkable 59 per cent increase. In Montreal, the industry now employs more direct jobs than the video game industry – a staple of Montreal’s economy.
“This unprecedented growth of mutual funds in Quebec is the result of a changing retirement landscape in the province where individuals are increasingly responsible for their own retirement savings,” said Paquin.
“Research consistently demonstrates that mutual funds are the desired savings vehicle for everyday Quebecers,” added Paquin.
Other highlights from the report:
- In addition to creating direct jobs, the Quebec funds industry generates demand for other financial services and industries – mostly legal and accounting services. As a result, more than 18,000 jobs were supported by the sector in 2013.
- The funds industry generates $435 million in tax revenues for the Quebec government and had a total economic footprint of $1.8 billion in for the province in 2013.
- Quebec’s population is aging more rapidly than other provinces, reinforcing mutual funds as the preferred vehicle of choice to save for retirement.
CFIQ represents mutual fund management companies and mutual fund dealers who do business in Quebec. Its manager members oversee over $200 billion in assets under management and its dealer members are responsible for the majority of mutual funds distribution in the province. CFIQ is the Quebec voice of the Investment Funds Institute of Canada (IFIC).
The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. The organization is proud to have served Canada’s mutual funds industry and its investors for more than 50 years.
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For more information:
Kia Rassekh, Manager and Senior Policy Advisor, Quebec