Assets declined last year, breaking the upward trajectory of the past decade
The assets held by Canada’s mutual funds and ETFs had been steadily rising over the past decade, but 2022 disrupted the curve.
Since 2013, when assets were $999 billion for mutual funds and $69 billion for ETFs, there has been steady growth every year, with the exception of a dip in 2018, but in 2022 assets dropped 13% for mutuals and 3% for ETFs.
The analysis is part of the 2022 Investment Funds Report from the Investment Funds Institute of Canada (IFIC) which rounds up how the market performed in the past year.
At the end of 2022, Canadian mutual fund assets totalled $1.8 trillion and ETF assets totalled $313.7 billion.
For mutual funds, the year posted net redemptions of $44.1 billion, while the decreased asset total for ETFs contrasts with positive net sales of $36.1 billion.
Responsible investments
The report shows how Canadians are embracing responsible investing.
Net sales for responsible investments were $3.9 billion for mutual funds and $2.9 billion for ETFs with mutual fund assets of $34.5 billion and ETF assets totalling $10.2 billion.
At the end of 2022, high interest savings mutual fund assets totalled $6.8 billion and ETF assets totalled $15.5 billion. Net sales into these funds accounted for 64.4% of all money market mutual fund sales and 94.6% of all money market ETF sales.
“In a year that saw rising inflation and interest rates, high levels of volatility, and general market uncertainty, IFIC’s extensive data collection and reporting capabilities enable us to further understand the interaction of the economic environment and the investment funds industry,” said Andy Mitchell, President and CEO, IFIC. “These insights help our member firms and other industry stakeholders track changes, identify market trends, and better understand the investor experience.”
