Fund sales recovered in July, finds IFIC

Both mutual fund and ETF sales surged in July, according to new data from the Investment Funds Institute of Canada (IFIC).

The industry trade group reported that mutual funds recorded $2.5 billion in net sales for July, up from $771 million in June.

A turnaround in equity fund sales powered the net sales improvement. Equity funds generated $460 million in positive net sales in July, after suffering $1.4 billion in net redemptions in June.

Bond fund sales also ticked up in July, coming in at $1.4 billion, up from $1.1 billion in June.

Conversely, balanced fund sales dropped to $314 million from $662 million in June.

ETF sales also jumped in July, IFIC reports. Monthly ETF sales came in at $1.6 billion, up from $331 million in June.

Equity ETF flows also improved in July, but didn’t make it to positive territory. Instead, equity funds recorded a more modest $152 million in redemptions, compared with $902 million of redemptions in June.

At the same time, bond ETFs also saw sales surge to $1.4 billion from $870 million in June. Balanced ETF sales were up slightly to $163 million from $137 million in the previous month.

Both mutual fund and ETF assets under management (AUM) also increased in July.

IFIC reports that mutual fund assets rose by $9.5 billion in July to $1.57 trillion, which represents a 0.6% gain.

ETF assets grew faster, gaining 1.3%, as AUM increased by $2.3 billion to $183.8 billion.

Staff

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