Mutual funds shed assets in September

Fixed-income inflows decelerate while balanced, equity strategies see redemptions, industry statistics show

Mutual funds shed assets in September

Appetite for mutual funds was muted toward the downside in September as Canadian investors redeemed a net total of $33 million, according to the latest monthly figures from the Investment Funds Institute of Canada (IFIC).

Balanced mutual funds saw net redemptions of $232 million, bringing their year-to-date record of flows to roughly $6 billion in net redemptions. Equity mutual funds shed $1.64 billion last month, while bond inflows weakened from $2.86 billion in August to $1.54 billion last month.

Specialty funds took in $500 million, while money market funds saw a net outflow of $198 million.

Total assets in Canadian mutual funds stood at $1.67 trillion at the end of September, with balanced funds accounting for nearly half with $825.2 billion. Equity funds held $534.7 billion, while bond fund assets amounted to $237.6 billion.

Meanwhile, ETFs saw $699 million in net sales last month, roughly a fourth of the $2.73 billion they attracted in August. Balanced funds netted $163 million in September inflows, while equity ETFs shed $343 million. Fixed-income inflows decelerated to $804 million last month, compared to August’s $1.18 billion.

ETF assets amounted to $234.6 billion at the end of last month, reflecting a modest shrinkage compared to the $237.1-billion total in August. Balanced ETFs held just $6.1 billion, while equity and bond ETF assets stood at $140.7 billion and $76.1 billion, respectively.


Follow WP on FacebookLinkedIn and Twitter