Billions of dollars flee Canadian mutual funds. | Jobs Vox

Canadian mutual funds suffered another month of strong net outflows in November.

The latest data from the Investment Fund Institute of Canada (IFIC) shows $8.7 billion in total outflows from Canadian mutual funds, marking the eighth consecutive month of net redemptions.

Investors pulled money out of equities, equities, bonds and specialty funds, while traditionally safe money market funds saw modest net outflows of $551 million.

“2022 has been a challenging year for investors in terms of volatility and asset-level returns. Both stock and bond returns are negative in 2022. Investors have responded to this environment by shifting their exposure to continued volatility and risk away from the market. Anish Chopra, managing director at Portfolio Management Corporation, said: “Weak returns going forward. Yahoo Finance Canada In the email.

“If investors are sold out of the market, the question they should be asking themselves is when should it be answered?”

As of the end of November, $35.4 billion had been bought from mutual funds year-to-date.

Meanwhile, investors poured $4.2 billion into equities in November. The ETF has seen net income every month this year except June.

“Investors in general are becoming more aware of the effect that fees have on the long-term performance of their investment portfolios, and I think it’s important to ensure that every investor is getting value for what they’re paying,” said Carl Berger, senior wealth advisor and director at Siddle Asset Management, in an email.

“Mutual funds are closely linked to the underlying index and attract high fees. must be. Be much less attractive than an ETF that represents the same exposure, but that has a much lower fee. As investors focus more on ‘fee drag’, you’d think that would continue to favor lower-cost options.

ETFs have gained popularity due to their lower fees compared to mutual funds, but the mutual fund industry is still very large and therefore has a significant impact on the financial markets.

The story continues

IFIC data showed mutual fund assets reached $1.87 trillion in November, compared with $317.8 billion in ETF assets. The institute said the data covers 85 percent and 83 percent of the mutual fund and ETF industry, respectively.

Michelle Zadikian is a senior reporter at Yahoo Finance Canada. Follow her on Twitter. @m_zadikian.

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