Another bad month for stand-alone funds

By Andrew Rickard | January 03 2017 11:30AM

Investors withdrew more money from stand-alone mutual funds in November. Equity funds were also out of favour.

Statistics collected and published by the Investment Funds Institute of Canada (IFIC) reveal that investors redeemed $184.3 million from stand-alone mutual funds in November and placed about $2.43 billion in fund-of-fund products. The stand-alone product category has posted net redemptions every month since April.

Year-to-date, total net sales of mutual funds reached $28.06 billion and there were $1,326 billion in mutual fund assets under management at the end of November, up $7 billion or 0.50% over the previous month. Since the same month in 2015, total mutual fund assets have increased by $91.7 billion or 7.4%.

Broken down by asset class, IFIC says that balanced funds collected the most new money in November, with net sales of $2.31 billion: this is the same level of net sales that was reported in October. Bond funds sales came to $0.31 billion, a steep decline compared to the $1.31 billion of net sales of recorded in the previous month, while equity funds saw net redemptions of $0.30 billion in the month of November. Year-to-date, investors have removed about $5.5 billion from equity mutual funds.

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