The Investment Funds Institute of Canada (IFIC) is reporting that investment fund net assets increased in January 2023 while both mutual funds and exchange-traded funds (ETFs) recorded net redemptions for the month.
Mutual fund net assets were $1.886-trillion at the end of January 2023, an increase of $77-billion or 4.3 per cent when compared to the previous month when net assets were $1.809-trillion. ETF assets, meanwhile, totalled $328.9-billion at the end of January 2023, an increase of $15.2-billion or 4.8 per cent when compared to December when ETF assets were $313.7-billion.
Neither group was able to claim net sales during the month, however. Mutual funds recorded net redemptions of $477-million while ETF net redemptions were $491-million in January 2023.
For mutual funds, the net redemptions are notably slower than reported in recent months. In December 2022 alone, mutual fund net redemptions were $8.7-billion. Comparatively speaking, mutual fund net sales were nearly $7.2-billion in January 2022. In January 2023 sales of bond funds were not enough to offset net balanced and equity fund redemptions.
ETF investors also exited their investments, notably redeeming $491-million, after the funds reported net sales of nearly $7.7-billion the prior month.