Equity-focused funds led sales in November

Latest statistics from IFIC showed over $100-billion asset growth in mutual funds

Equity-focused funds led sales in November

The Investment Funds Institute of Canada (IFIC) has released its latest monthly report of net sales and net assets, which covers the month of November.

Mutual funds ended the month with $1.75 trillion in net assets, an increase of $104 billion or 6.3% over October.

Balanced funds held a total of $859.6 billion, while equity funds accounted for $573.5 billion. Bond fund assets amounted to $243.4 billion.

The overall increase in mutual fund assets dwarfed mutual net sales for November, which reached $6.2 billion; that was nearly double the previous month’s showing of $3.4 billion.

Equity funds led the charge with $3.83 billion in net sales – a significant comeback from October’s $3 million in net redemptions – followed by balanced funds, where net sales accelerated to $2.761 billion.

Demand for bond funds cooled, with November’s $250 million in net sales significantly trailing the $1.775 billion record in October. Specialty funds took in $414 million, while money market funds saw significant redemptions, with investors pulling out $1 billion last month.

On the ETFs side, net assets rose by $18 billion to reach $250.1 billion overall.

Balanced ETFs held a modest $6.8 billion; equity ETFs continued to hold the lion’s share with $153.6 billion, advancing significantly from its $138.1-billion finish in October. Bond fund assets stood at $77.9 billion; specialty funds and money-market funds, meanwhile, held slivers totalling $5 billion and $6.7 billion, respectively.

Net sales in ETFs accelerated in November, totalling $3.2 billion compared to the nearly $2 billion in October.

Equity ETFs soaked up $2 billion in November net sales – an increase of about 50% over the $1.29 billion record the previous month – distantly followed by bond ETFs with $975 million.

Balanced ETFs and specialty ETFs saw modest sales of $202 million and $186 million, respectively. Money market funds, meanwhile, shed $171 million.


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