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Mutual fund sales rebound in April

By Kate McCaffery | May 22 2020 11:55AM

Photo: Freepik

After suffering a significant month of redemptions in March which saw net redemptions of more than $14-billion, the latest numbers from the Investment Funds Institute of Canada show that mutual fund sales rebounded in April, increasing $1.25-billion in April 2020.

Year-over-year mutual fund assets are down somewhat, totaling $1.54-trillion at the end of April 2020, compared with the $1.56-trillion in assets the industry held in April 2019.

Exchange-traded funds (ETF) sales meanwhile, pulled back somewhat in April relative to March 2020 numbers, but total assets increased overall year-over-year. ETF assets totalled $204.2-billion at the end of April 2020, up from $178.6-billion in April 2019 and also up from $190.3-billion in March 2020.

ETF sales decline

Net sales for ETFs pulled back to $703-million in April 2020, a decrease relative to the $2.98-billion reported in March 2020. The number is also lower when compared to ETF net sales of $2.4-billion reported back in April 2019.

In mutual funds, balanced funds were the biggest loser this month, with net redemptions of more than $1.4-billion. Aside from money market funds which also lost $27-million, all other fund categories enjoyed net sales during the month. Equity market funds lead the way with $1.3-billion in net new sales.  In ETFs, the bond ETF category was the only category suffering net redemptions during the month, with $629-million in net redemptions. Equity ETFs and specialty ETFs had net sales of $508-million and $509-million, respectively.

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