The average value of assets under management at Canada’s largest publicly traded fund managers slid two percent in January. But, like a note from analysts at CIBC World Markets points out, shares in several from the companies still gained ground.
Based in Toronto, CI Financial Corp. reported a couple.8 percent decline in assets to $108 billion. Winnipeg’s IGM Financial Inc. saw a two percent dip in holdings to $131 billion, with Investors Group shedding 1.3 per cent and Mackenzie Financial Corp. another 2.9 percent. Also situated in Toronto, AGF Management Ltd. saw single.2 per cent decline in assets to $32.3 billion, because of an increase in mutual fund redemptions.
While shares of CI and IGM gained 1.1 and 1.6 percent, respectively, AGF’s stock “took it on the chin” recently. After finishing December within the green, the stock dropped 9.4 percent in January – and was down near to 25 % at one point. It’s lost a whopping 40.5 percent during the final 12 months.
“Data in the U.S. confirms that retail investors have turned risk adverse,” Paul Holden, a CIBC analyst, wrote this week in a research note. Within the first 3 weeks of 2016, investors redeemed US$19 billion from mutual funds. Interest in popular exchange-traded funds “also hit a wall,” with net creations of US$0.4 billion versus US$40 billion the prior month. “We are not overly optimistic concerning the 2016 RSP season.”