Equity funds accounted for $12 billion of the month’s inflows, “despite geopolitical conflict and drawdowns in equity markets triggered by sharp increases in oil prices” amid the U.S.-Israeli war on Iran, the report said.
On a regional basis, Canadian and U.S. equity funds each took in more than $3 billion. Meanwhile, broad developed market and global equity funds both registered inflows north of $2 billion. Emerging market equity funds pulled in $226 million as their inflows “slowed down significantly” from February due to the “disproportionate impact from the oil price rout that kicked off in March.” Regional and country developed markets took in $177 million.
On a sectoral basis, every fund category recorded inflows, except for the materials sector, which suffered $94 million in redemptions. Financials sector funds registered the highest net sales at $435 million.
Fixed-income funds welcomed $4.9 billion in inflows.
By fixed-income fund type, Canada aggregate bond funds led the inflows, drawing $2.1 billion in net sales. Money-market funds and Canada corporate bond funds were next in line, taking in $897 million and $793 million, respectively. Preferred/convertible bond funds were the only type of fixed-income funds to record redemptions, suffering $11 million in outflows.
By maturity, broad/mixed bond funds were the most popular, attracting $2.3 billion in inflows. Short-term bond funds and money-market funds recorded sizable chunks of the inflows too, with $1 billion and $897 million gathered, respectively.
Commodities funds recorded a modest $20 million in inflows as gold and silver bullion ETFs “reversed the inflow trend in February and suffered small outflows in March as the price of gold experienced its largest drawdown since the price surge that began in 2023,” the report noted. Broad commodity ETFs, which “benefited from the exposure to energy and agriculture futures” suffered outflows as well, it added.
Inverse leveraged and leveraged funds reeled in $750 million, owing mostly to lightly leveraged funds, which recorded inflows of $628 million.
Multi-asset funds registered $1.6 billion in inflows.
Crypto-asset funds took in $26 million.
ESG funds were in the red in March, suffering $81 million in redemptions.
March also brought 29 new ETFs across several providers.