Statistics Canada says non-residents reduced their holdings of Canadian securities by $1.9-billion in December, led by large retirements of bonds and equities.
It says Canadian investors bought $5.5-billion in foreign securities, marking a fourth straight month of investment.
Non-resident investors acquired $4.8-billion of Canadian debt securities in December, a sixth straight month of investment.
However, they cut their holdings of Canadian shares by $6.7-billion in December, the largest divestment since November 2007.
This was related to cross-border merger and acquisition activity.
Canadian stock prices ended December at their highest level since February 2012.