Canadians Take $10 Billion Out Of Mutual Funds In June

view original post

Canadian mutual funds posted net redemptions of $10.4 billion in June as investors continue to
sell their holdings amid worsening market volatility.

June’s mutual fund sales were greater than in May, when $6.4 billion was taken out of Canadian
funds.

The latest data from The Investment Funds Institute of Canada (IFIC) shows that investors
pulled their money from all types of mutual funds – equity, bond, and balanced funds – while
money market funds saw an inflow of $1.3 billion during June as investors sought safe havens.

The huge volume of redemptions came as volatility continued to roil stock markets around the
world. Rising interest rates, fears of a global recession, and worries about corporate earnings
conspired to push stocks lower in June.

IFIC reported that Canadian mutual funds declined by a total of $107 billion, or 5.6%, in June
from May due to the ongoing market turmoil.

Exchange-traded funds (ETFs) saw fewer redemptions in June than did mutual funds.
Redemptions from Canadian ETFs totaled $670 million last month, with ETFs that track stocks
posting the biggest sales.

Related Posts