The increase comes mainly from a significant rise in net sales
The Investment Funds Institute of Canada (IFIC) has reported that the assets under management (AUM) for the country’s mutual funds have reached $1.43 trillion. Year-to-date, the industry’s AUM has grown by $89.4 billion or 6.7%.
That growth was reflected in the IFIC’s mutual fund industry overview for May. According to the report, net sales for the month were $4.3 billion — a nearly 60% acceleration over April’s net sales of $2.728 billion.
Looking at sales by asset class, balanced funds experienced the most inflows, gathering $3.22 billion in net sales for the month. Bond funds were a distant second, with around $887 million in net sales. Specialty funds and equity funds followed, with around $262 billion and $151 billion in net sales, respectively.
Money-market funds sustained outflows for the second month in a row, with some $217 million in redemptions for May. Year-to-date redemptions for the fund class were $412 million.
Growth in AUM has not kept pace with net sales. Assets under management in May were just under $10 million more than the $1.42 trillion reported in April.
Compared to April, the AUM for most asset classes of mutual funds in May did not grow more than $2 billion. Balanced funds were the only exception, with their AUM rising by some $8.3 billion over their April AUM of $735.3 billion.
The year-to-date increase in AUM for equity funds was $30.5 billion (7.1%). For balanced funds, it was $49.3 billion (7.1%), and bond funds’ AUM grew by $11.6 billion (6.7%). Year-to-date AUM growth for specialty funds reached $1.2 billion (10%).
Money-market funds lost around $400 million (1.6%) year-to-date.
Year-over-year, Canadian mutual funds’ overall AUM has risen by roughly $160 million.
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That growth was reflected in the IFIC’s mutual fund industry overview for May. According to the report, net sales for the month were $4.3 billion — a nearly 60% acceleration over April’s net sales of $2.728 billion.
Looking at sales by asset class, balanced funds experienced the most inflows, gathering $3.22 billion in net sales for the month. Bond funds were a distant second, with around $887 million in net sales. Specialty funds and equity funds followed, with around $262 billion and $151 billion in net sales, respectively.
Money-market funds sustained outflows for the second month in a row, with some $217 million in redemptions for May. Year-to-date redemptions for the fund class were $412 million.
Growth in AUM has not kept pace with net sales. Assets under management in May were just under $10 million more than the $1.42 trillion reported in April.
Compared to April, the AUM for most asset classes of mutual funds in May did not grow more than $2 billion. Balanced funds were the only exception, with their AUM rising by some $8.3 billion over their April AUM of $735.3 billion.
The year-to-date increase in AUM for equity funds was $30.5 billion (7.1%). For balanced funds, it was $49.3 billion (7.1%), and bond funds’ AUM grew by $11.6 billion (6.7%). Year-to-date AUM growth for specialty funds reached $1.2 billion (10%).
Money-market funds lost around $400 million (1.6%) year-to-date.
Year-over-year, Canadian mutual funds’ overall AUM has risen by roughly $160 million.
For more of Wealth Professional's latest industry news, click here.
Related stories:
What are the hallmarks of a winning mutual fund?
Latest mutual fund results released
