Insight Investment Funds Report April 2023—Yield Hunting Season Drives Flows in Q1

The first quarter of each year is a crucial time for financial services providers as many Canadian households make decisions about investments and borrowing. The 2023 sales campaign started on a weak note for investment fund providers, as the first month of the year closed in net redemptions—a bad omen. Market volatility, rising inflation and interest rates combined to create an unreceptive environment for equities and fixed income alike—a trend witnessed since early 2022. However, sales results for investment funds in the yield continuum are improving.

The Insight research feature examines the Q1 sales environment from multiple vantage points, including asset classes, sponsor types and product structures, paying special attention to the mandates driving positive flows in this environment. A companion workbook is available in SIMFUND Canada. The Trendlines article focuses on sales in segregated funds.