Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }
Coronavirus information
Coronavirus information
The Zero Canada Project provides resources to help you make the most of staying home.
Visit the hub

Canadian mutual fund companies saw more than $14-billion in net redemptions in March as the novel coronavirus clobbered global equity markets, while exchange-traded funds recorded positive sales growth of $3-billion.

Mutual-fund assets totalled $1.45-trillion at the end of March, down by almost $160-billion or 10 per cent compared with the prior month, according to data released on Wednesday by the the Investment Funds Institute of Canada (IFIC).

Much of the decline was because of falling markets, which drove down the value of assets in the funds. However, IFIC’s March data show that the majority of the $14.1-billion in redemptions came from investors cashing out of long-term mutual funds, including balanced, equity and bond funds.

Story continues below advertisement

Balanced funds saw $11-billion in net redemptions, wiping out the strong sales momentum in the first two months of the year, when they recorded $2.5-billion and $3.5-billion in net sales during January and February, respectively.

Equity funds had $702-million in net redemptions in March, while bond funds saw $6.7-billion in net redemptions. The losses were somewhat offset by net gains in two asset classes.

In March, money market funds gained $4.1 billion in sales, and specialty funds sold $181-million.

Canadian exchange-traded fund (ETF) assets totalled $190.3-billion at the end of March, a $20-billion drop from the month prior.

Despite seeing total assets decline by 9.5 per cent amid the market turmoil, ETFs posted overall net new sales of $3-billion in March, the majority in long-term funds.

Equity ETFs brought in the most new money, with $4.1-billion in net sales, while balanced funds saw $124-million in sales. Money market ETFs finished the month with $31-million in net sales.

Both bond ETFs and specialty ETFs saw net redemptions of $1.2-billion and $139-million, respectively. Bond ETFs reported sales of $2.8-billion the month prior, while specialty ETFs saw $43-million in net sales for February.

Story continues below advertisement

According to IFIC, ETFs hold a 13-per-cent market share of all assets in investment funds in Canada. While ETFs continue to grow, the far larger value of assets held in mutual funds means that when investors are feeling pessimistic, mutual funds are more likely to “feel the brunt of mass selling,” says Daniel Straus, vice-president of product research at National Bank of Canada Financial Markets.

“When investors find themselves sitting on freshly liberated cash, ETFs are a natural destination in this new era of cost-consciousness,” Mr. Straus said. “I would expect this trend to continue in every sell-off environment until ETFs and mutual funds find a certain equilibrium in their relative market share.”

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies