The Investment Funds Institute of Canada (IFIC) has released its June 2016 industry overview, which shows that while assets under management (AUM) for mutual funds generally increased, net sales experienced an overall decrease.
According to the report, mutual funds experienced a year-on-year increase in assets, with total AUM at $1.267 trillion compared to $1.218 trillion in the previous year. AUM for June for most fund classes was also generally higher than at the beginning of the year; the exceptions were specialty funds, which had AUM of $12.9 billion in June compared to $24.6 billion at the start of 2016, and short-term funds, which dropped to $24.0 billion from $25.2 billion.
However, collapsing the comparison time frame to one month shows a dip: total mutual fund assets under management (AUM) for June 2016 were $1.267 trillion, compared to $1.269 trillion in May, translating into a 0.17% decrease.
Looking at the statistics for net sales, net sales for mutual funds in June totaled $1.5 billion, down from $2.3 billion the previous month and $4.8 billion in June 2015. Last month’s year-to-date net sales of $16.6 billion were also down compared to the YTD figure from the previous year, which was $40.9 billion.
The decreased net sales could be attributed to decreases in stand-alone funds, equity funds, and short-term funds, which experienced net redemptions of $983 million, $768 million, and $301 million respectively.
On the whole, the figures seem to suggest that while the mutual fund industry is still moving forward, large-scale redemptions from certain fund asset groups are causing momentum in general to decline.
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