ETFs also saw weaker inflows in April according to newly-released data
Volatile money markets saw concerned investors pull-back from Canadian mutual funds in April.
New data from the Investment Funds Institute of Canada (IFIC) show that the total value of mutual fund assets at the end of the month totalled $1.9 trillion, a sharp decline from the previous month.
Assets fell $87.5 billion or 4.4% month-over-month and net redemptions were at a record $4.9 billion.
Redemptions were seen across the spectrum of mutual funds, a rare occurrence, including more than $2 billion in balanced funds and more than $1.7 billion in bonds.
The sell-off is in sharp contrast to activity in 2021 which was recently confirmed as a stellar year for mutual funds, outpacing ETFs after several years as the laggard.
Mutual funds ended 2021 with $2 trillion in AUM, a marked increase from $1.79 trillion in November.
ETF sales positive
For ETFs, there was also a significant decrease in total assets, down 4.5% or $14.7 billion compared to March to a total of $310 billion.
However, ETFs recorded net sales of $1.0 billion, with positives across all asset classes except speciality and led by equity funds ($539 million) and bonds ($322 million).
Overall, AUM was down at the end of April compared to the end of 2021 when Canadian ETFs held net assets of $347.4 billion, almost $100 billion more than a year earlier.
* Important Information Regarding Investment Fund Data:
1. Mutual fund data is adjusted to remove double counting arising from mutual funds that invest in other mutual funds.
2. Starting with January 2022 data, ETF data is adjusted to remove double counting arising from Canadian-listed ETFs that invest in units of other Canadian-listed ETFs. Any references to IFIC ETF assets and sales figures prior to 2022 data should indicate that the data has not been adjusted for ETF of ETF double counting.
3. The Balanced Funds category includes funds that invest directly in a mix of stocks and bonds or obtain exposure through investing in other funds.
4. Mutual fund data reflects the investment activity of Canadian retail investors.
5. ETF data reflects the investment activity of Canadian retail and institutional investors.
