Fund inflows bode well for money managers

CI Financial chairman Bill Holland.

Net inflows of Canadian mutual funds during February were $10.7 billion, an 18% increase over the previous year. The strong performance within the key month during RRSP season bodes well for asset managers, particularly given the market’s recent volatility and the difficult comparable period since flows in 2014 were also strong.

Geoffrey Kwan, an analyst at RBC Capital Markets, noted that although gains may slow, monthly net sales happen to be resilient as net mutual fund sales climbed above $56 billion in February. Equity funds also appear to have sold well during RRSP season since net sales rebounded further last month.

Equity fund net sales improved 15%, with $1.2 billion of the $2.1-billion inflow from the U.S. equity category. The international equity category was next at $991 million, while weaker trends in domestic equity funds continued with net redemptions of $266 million.

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