Mutual fund assets surge past $2 trillion again: IFIC

Equities mutual fund sales hold up, while equities ETFs surge in October

Close up of businesswoman using calculator while going through financial bills.

Mutual fund assets climbed back over the $2-trillion mark in October, according to the latest data from the Investment Funds Institute of Canada (IFIC).

The industry trade group reported that mutual fund net sales declined to $5.6 billion last month from $7.9 billion in the previous month. Yet assets surged by $44.3 billion or 2.2% to $2.03 trillion.

Market gains continued to drive the increase in industry assets, but sales have been notably stronger this year. Through the first 10 months of 2021, total net sales were over $104.4 billion, compared with $17.4 billion in the same period last year.

The dip in October net sales came as the bond and balanced categories both saw monthly net sales drop by about $1 billion.

Bond fund net sales came in at $367 million last month, down from $1.6 billion in September. And balanced fund sales were $3.3 billion, down from $4.3 billion.

Equities funds bucked the trend, however, with monthly net sales reaching $1.97 billion in October, up from $1.84 billion in September.

The equities category led the way in ETF net sales in October too, IFIC reported. Equities ETF sales jumped to $3.1 billion last month from just $221 million in September.

Overall, ETF net sales also rose, coming in at $4.3 billion last month, up from $2.6 billion in the previous month.

Alongside the increase in equities ETF net sales, bond sales dropped to $461 million in October from $1.7 billion in September.

Balanced fund sales also edged down to $212 million from $318 million.

Amid the increase in net sales, ETF assets jumped by 4.3% in October to $331.9 billion as assets rose by $13.5 billion in the month.