Canadian investment fund sales accelerated in January

Latest industry figures show mutual fund inflows strengthened by surges in balanced and bond strategies

Canadian investment fund sales accelerated in January

The Canadian mutual fund industry saw its net sales jump by more than 50% month-on-month in January even as assets saw a modest 0.5% dip, according to the latest figures from the Investment Funds Institute of Canada (IFIC).

According to IFIC, mutual fund assets amounted to $1.775 trillion at the end of January, a very slight decrease of $8.5 billion compared to December 2020.

Mutual fund net sales for last month amounted to $11.87 billion, a significant rise over $7.34 billion in December. January net sales for mutual funds were led by balanced funds, which accelerated to $5.19 billion in inflows following December’s $2.99 billion net inflows record.

Bond funds also surged dramatically with $3.17 billion in net sales last month, nearly doubling the $1.66 billion they saw the month prior. Equity fund sales also gathered pace, going from $3.37 billion in December to $4.47 billion last month.

Overall, mutual funds ended January with $1.775 trillion in net assets, mildly down from 1.784 trillion as of New Year’s Eve.

Net sales for ETFs last month were recorded at $4 billion, modestly higher compared to the $3.86 billion in December. Equity ETFs continued to lead the way, attracting $2.17 billion in inflows, followed by bond funds with $1.31 billion. Net sales for balanced funds picked up significantly, from $310 million in December to $495 million in January.

Over the same period, total ETF net assets rose by roughly 1% from $257 billion to just shy of $260 billion. That came along with modest increases in net assets for balanced funds (from $7.2 billion to $7.7 billion), equity strategies ($158.4 billion to $159.4 billion), and bond ETFs ($79.3 billion to $80.1 billion).


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