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Redemptions rise in Canada’s mutual fund industry

FLASH | PRO LEVEL PRIVILEGE
By The IJ Staff | January 09 2019 01:30PM

Photo: Freepik

Mutual funds in Canada were dealt a major redemption blow in November, despite an increase in assets.

The Investment Funds Institute of Canada (IFIC) has reported the combined assets of Canada’s mutual fund industry totalled $1.47 trillion in November. That’s an increase of $15.5 billion or 1.1% compared to October.

At the same time, the industry recorded net redemptions of $2.4 billion and year-to-date net sales of $8.0 billion. 

Some of the biggest redemptions were in long-term funds with a loss of $2.8 billion. Long-term fund net redemptions were $2.8 billion in November and year-to-date net sales of long-term funds stood at $6.4 billion, 85.3 per cent lower than year-to-date, 2017.

Balanced fund net redemptions were $1.5 billion in November and year-to-date net sales were $3.9 billion. Year-to-date balanced fund net sales were 83.3% lower than year-to-date, 2017.

Bond fund net redemptions stood at $1.2 billion in November, 137.2% lower than year-to-date, 2017.

Equity fund net redemptions were $530 million in November, 62.8% lower than year-to-date, 2017.

Money market fund net sales were a bright spot for the industry with $375 million in sales in November and year-to-date net sales $1.6 billion. Year-to-date money market fund net sales were 402% higher than year-to-date, 2017.

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