IFIC releases 2023 Investment Funds Report
Report provides data, analysis of Canadian mutual fund and ETF assets and sales, and investor trends
January 31, 2024 (Toronto) – The Investment Funds Institute of Canada (IFIC) today released its 2023 Investment Funds Report, which provides data and analysis of mutual fund and exchange-traded fund (ETF) sales and assets under management.
“IFIC’s robust data collection and reporting allow us to better understand how economic factors and the investment funds industry interact,” said Andy Mitchell, IFIC’s President and CEO.
At the end of 2023, mutual fund assets were up by seven per cent from 2022, despite total net redemptions. ETF assets were up by 22 per cent from 2022, reaching their highest total ever at the end of the year.
“There are many reasons for changes in investor behaviour, but we know that mutual fund sales in 2023 were affected by market volatility, economic uncertainty and rising inflation and interest rates,” said Mitchell. “Many Canadians had to make tough financial decisions in order to put groceries on the table and pay the mortgage.”
Data highlights
- At the end of 2023, Canadian mutual fund assets were $1.936 trillion and ETF assets were $382 billion.
- Mutual fund net redemptions were $57.1 billion and ETF net sales were $37.6 billion.
- High-interest savings mutual fund assets totalled $14.8 billion. High-interest ETF assets totalled $22.5 billion. Net sales into these funds accounted for 47 per cent of all money market mutual fund sales and 83 per cent of all money market ETF sales.
- Responsible investment (RI) mutual fund assets were $40 billion and RI ETF assets were $16.3 billion. In 2023, RI net sales were $538 million for mutual funds and $4.8 billion for ETFs.
Investor trends
Watch our short video summarizing the key trends.
- With ongoing inflation and higher interest rates, many Canadians were forced to pull back on saving and investing.
- Many investors felt uncertain because of market volatility, resulting in a flight to safety toward more conservative investments, such as money market funds and guaranteed products.
- There were bright spots, including positive sales of responsible investment mutual fund and alternative assets.
About IFIC
The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together approximately 150 organizations, including fund managers, dealers, professional and back-office service providers, to strengthen the integrity of the investment funds industry, foster public confidence in investment funds, and enable investors to achieve good outcomes. By connecting savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation.
For more information, please contact:
Christine Harminc
Senior Manager, Communications and Public Affairs
charminc@sima-amvi.ca
416-309-2313
