Improved market performance attracts Canadian investors

TORONTO - Canada's mutual fund industry saw its total assets increase by more than two per cent in March due to improved market performance, according to preliminary data from the Investment Funds Institute of Canada.

By: Orit Alon
Published: April 5th, 2010 in Business » World

IllustrationPic: Illustration

Canadians transfered more funds to the mutual fund industry on March due to improved market performance, according to preliminary data from the Investment Funds Institute of Canada. The total assets were increased by more than two per cent on last month.

IFIC said Monday that net mutual fund assets are estimated to be between $607.4 billion and $612.4 billion as of the end of March, up 2.16 per cent from February's total of $597 billion. The institute said early numbers from some of its members indicate that net sales of mutual funds in March were between $1.12 billion and $1.62 billion. This is down significantly from net sales of $3.1 billion in February, but the first quarter of the year still saw an impressive level of new investment, IFIC said.

"Canadians invested roughly $12 billion in long-term funds over the first quarter of 2010 with over $5 billion of the total coming from new fund investment rather than rebalancing activity," stated Pat Dunwoody, vice-president of member services and communications. "In addition, existing assets under management saw an increase nearing two per cent due to improved market performance in March." The S&P/TSX composite index gained 3.5 per cent in March.

With files from the Canadian Press.

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