Sylvia Rizk, Senior Director, Business Development
An estimated $1 trillion of Canadian personal wealth is expected to shift from Baby Boomers to their heirs between now and 2026.1 This new group of tech-savvy, alpha-driven investors—mostly millennials—is causing investment counsellors to rethink their business model as they look to retain and grow relationships with a cohort of younger investors.
And this younger generation is not just inheriting wealth—they’re inheriting the power to shape the economy according to their values. We see RBC Investor Services as the partner of choice for investment counsellors as they embark on this transformational journey.
This younger generation is not just inheriting wealth—they’re inheriting the power to shape the economy according to their values
Generating enhanced returns
High-net-worth individuals are looking for their investment counsellors to generate enhanced returns in today’s uncertain economic environment, including the ability to access alternative investments—including private equity, private debt, real estate and infrastructure—that previously were only available to large corporate and institutional investors.
Once the sole realm of larger corporate and institutional investors, the democratization of alternatives through such tools as liquid alts and the recently proposed Ontario Long-Term Funds stand to make private assets more attractive to high-net-worth investors. According to the 2024 World Wealth Report, more than two-thirds of high-net-worth investors plan to increase their investments in private equity.2 The same report also shows 72% of gen Z and millennial investors believe traditional stocks and bonds won’t suffice.
But not all investment counsellors are comfortable with alternatives, which can be more complicated to administer than traditional equity and fixed-income securities. RBC Wealth Management’s North America Family Office Report reflects this, showing that improving liquidity (27%) has becomes increasingly important—ranking behind the desire for portfolio diversification (34%). This is because the limited number of exits in private equity markets means more illiquid assets on balance sheets.
Not all investment counsellors are comfortable with alternatives, which can be more complicated to administer than traditional equity and fixed-income securities
RBCIS supports investment counsellors with a deep understanding of the unique nature of alternative investments. We provide administrative support, dealing with the issuer to obtain pricing, handling the capital call process and submitting required reporting—areas that many investment counsellors would prefer to outsource.
Keep the human touch with a hybrid model
Investment counsellors are also increasingly under pressure to offer their clients a rich digital experience: real-time data, portfolio tracking, automated rebalancing and other self-serve tools. But this doesn’t diminish the need for human touch. Investors continue to see the benefits of sitting down with their counsellors and discussing their financial situation.
It’s not a competition between data-driven investor decisions and human advice. It’s a matter of finding the optimal hybrid model to meet investor needs. For example, human interaction becomes especially important during times of volatility, when personalized advice can help to balance client emotions and unintentional biases.
Investors continue to see the benefits of sitting down with their counsellors and discussing their financial situation
As tech platforms increase individual investors’ ability to execute portfolio strategies on their own—buying and selling at the click of a button—investment counsellors’ ability to offer a sober second opinion become more critical. It’s important that investment counsellors let their clients know they’re available to discuss potential investment strategies at any time. The relationship must be strong enough for clients to feel comfortable talking about untraditional investments like crypto and saying, “Here’s what I’m thinking. Here’s what I want to try.”
Enabling investment counsellors through trusted data
At the end of the day, Millennial and Gen Z clients expect personalized and purpose-driven advice, delivered with the convenience of digital tools. As a result, providing investment counsellors with clean, usable data to develop insights for their clients is a role we take very seriously—and as custodians, we’re the guardians of valuable portfolio data.
We add value to investment counsellors by providing access to trusted data via their chosen consumption channel. This data allows them to formulate the insights that generate differentiated value for their clients, enabling investment counsellors to be that sounding board. The data and related insights are equally essential for investment counsellors’ own businesses as they evolve their strategies.
What’s more, cybersecurity is also an important consideration in today’s digital world, but it shouldn’t distract investment counsellors from their advisory roles. At RBCIS, we take that burden off the investment counsellors as much as we can. As Canada’s largest bank3, RBC makes substantial investments in technology and innovation each year, and a significant portion of that budget is allocated to cybersecurity and risk management.
Creating a win-win
The growing millennial investor cohort is demanding more of their investment counsellors as these digitally proficient investors look to build high-performing, resilient portfolios within an unpredictable marketplace. As a result, it’s important for investment counsellors to leverage their custodian for support, freeing them up to focus on their clients and in building strong, sustainable businesses.
Please reach out to learn more and to attend our upcoming Future of Wealth Advice event on October 21, 2025.