Investors pulled net $10.4B from Canadian mutual funds in June

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Canadian mutual funds posted net redemptions of $10.4 billion in June as investors headed for the exits amid market volatility. That’s an acceleration from May, when a net $6.4 billion was pulled from mutual funds.

The latest data from The Investment Funds Institute of Canada (IFIC) showed investors pulled their money out of equity, bond, and balanced mutual funds last month, while money market funds saw a net inflow of $1.3 billion as investors opted to hide in safer haven assets.

The mass redemptions came as volatility gripped the markets in June with no shortage of investor worries.

Rising interest rates, fears about a potential recession, persistently high inflation, and concerns about how corporate earnings will fare in the tough economic environment all hammered stocks.

IFIC reported Canadian mutual fund assets fell $107 billion, or 5.6 per cent, to $1.8 trillion as of the end of June compared to May.

Exchange-traded funds fared much better in the month, with net redemptions of $670 million in June, the data showed, with equity ETFs posting the biggest decline.

Total ETF assets fell $22 billion, or 7.1 per cent, to $288.9 billion in June from May.

IFIC survey data accounts for about 91 per cent of total mutual fund industry assets and is complemented by additional data from Investor Economics.

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