Bond funds saw significant outflows in August, reports IFIC

Bond funds saw significant outflows in August, reports IFIC

Bond funds saw significant outflows in August, reports IFIC

Net sales in Canadian long-term mutual funds reached a mere $43 million in August as investors pulled out dollars from equity and bond funds, according to new figures from the Investment Fund Institute of Canada (IFIC).

In a reversal from the $45 million net sales gained in July, equity funds saw net outflows of $24 million last month. Bond funds saw significantly more pain; while July brought funds in the category $33 million in net sales, it saw $405 million in net redemptions in August.

Sales in balanced funds managed to stay in positive territory at $146 million in net sales, compared to $519 million in July. Meanwhile, specialty funds netted $325 million in August, somewhat less than the $345 million the previous month.

Money-market funds, meanwhile, saw $257 million in net sales from investors last month. It was a welcome turnaround from the $169 million net outflow the category saw in July.

Overall, the IFIC said, the Canadian mutual-fund industry saw $257 million in net inflows in August, in contrast to $772 million in July. Meanwhile, there were heavy inflows into Canadian ETFs last month, which saw the second-strongest month of sales for the year.

But the ETF industry still has a long way to catch up with the more established mutual-fund space. The Canadian ETF Association (CETFA) reported a total of $163.7 billion assets in Canada-listed ETFs as of August, while IFIC’s report shows total mutual-fund industry assets in Canada totalled some $1.535 trillion.

On a per category basis, Canadian-domiciled mutual-fund assets included:

  • $788.2 billion in balanced funds;
  • $516.4 billion in equity funds;
  • $188.3 billion in bond funds;
  • $17.2 billion in specialty funds; and
  • $25.5 billion in money-market funds

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