Nearly one third of wealthy are new Canadians: BMO

“These findings speak to the Canadian spirit of multiculturalism and how this country fosters an environment that helps individuals to succeed and thrive,” said Andrew Auerbach, head of BMO Harris Private Banking. “Attracting the best and the brightest demonstrates the relative prosperity and openness of Canada’s economy. This bodes well for long-term wealth generation.”

Given the importance of financial decisions, Auerbach said advisors who are fluent in languages other than English have an edge.

“As the client base becomes more diverse, you need to be sure that you can deal with clients in the languages that they are most comfortable with,” he said.

While most high-net-worth Canadians reported that they keep the majority of their money in Canada, about four in ten (37%) said they allocate a portion of their wealth outside the country. The top three markets identified were the United States (69%), Europe (35%) and Asia (28%).

According to Jennifer Chua, head of BMO’s Private Banking (China), “There’s no question that the growth we’re seeing in Asia is making it increasingly attractive to affluent Canadians. Ultimately, Asia is a good market for any investor to consider, regardless of net worth. However, seeking advice from a financial professional is critical to implementing the right strategy for success.”

The study also found that 92% of affluent Canadians are putting their money into tax-efficient investments, a marked increase from the 73% reported in 2008 and 67% in 2005. Two-thirds (66%) of respondents said they wanted to see a reduction in capital gains and income taxes, and less than half (38%) feel they are treated fairly when it comes to taxation.