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The Voice of Canada’s Investment Funds Industry

News Release

Canadians build financial security with one trillion dollars in mutual funds

Toronto, ON – February 19, 2014 – Canadians have accumulated savings of one trillion dollars in mutual funds – marking the first time in their 82-year history in Canada that funds have topped this significant milestone. As reported today by The Investment Funds Institute of Canada (IFIC), assets under management (AUM) for the mutual funds industry reached $1.01 trillion as of January 31, 2014, an increase of $140.1 billion or 16.1% over the previous 12 months.

“The importance of this milestone is the increase in wealth it represents for the roughly 4.6 million Canadian households that choose to save for their financial goals through mutual funds,” noted IFIC president and CEO Joanne De Laurentiis. “Mutual funds have grown tenfold in value since 1990 and are a cornerstone of Canadians’ retirement savings. Of the $986 billion increase since 1990, approximately 54% was generated by net sales, while 46% is the increase in the total value (market effect) of those savings,” added De Laurentiis.

IFIC chair Brian Peters, president and CEO of MD Physician Services Inc., said, “The industry wishes to thank investors for their continued trust – a trust we are committed to honour and reflect in all of our dealings with them. We are proud of our legacy of helping individual Canadians to plan and save for a secure retirement and we are committed to evolving products and advisory services to meet the ever-changing needs of Canadian investors.”

Canadians’ strong interest in mutual funds stems from several factors. Fund products provide innovative solutions built on easy, convenient access to a wide variety of products designed by highly trained investment professionals, while protecting investor interests. A mutual fund account can be started for as little as $25/month, providing instant access to capital markets in over 40 countries. Mutual funds save investors the time and energy required to build their own portfolios. “Investors are to be congratulated for the progress they have made toward creating a more secure financial future for themselves and their families,” said De Laurentiis. “By adopting regular savings habits, they are seeing their savings grow.”

Mutual funds are available through a variety of channels, with advisors being the most popular way for Canadians to purchase mutual funds. Advisors provide convenient access, counsel and guidance to help investors grow their financial assets.

“Advisors can take pride in the significant role they have played in helping Canadians achieve their financial goals,” De Laurentiis stated. “Research shows that advised households are twice as likely to save regularly for retirement across all age groups.”

For more information on the industry’s statistics, click here.

About the Mutual Funds Industry in Canada:

The first mutual fund was offered in Canada in 1932 with a goal of attracting $50,000 in savings. The real growth surge of mutual funds began in the early 1990s as Canadians saw interest rates on traditional savings accounts fall and began looking for new ways to grow their wealth. Today, mutual funds are the #1 investment choice of Canadian savers as some 117 fund companies offer approximately 2946 funds. Current AUM of over $1 trillion represents about five times the assets being managed for Canadians by the CPP Investment Board ($193 billion as of September 2013) and is significantly higher than the reported $775 billion in assets held in 2013 by the top 10 Canadian pension funds (including CPP).

By connecting Canada’s savers to Canada’s economy, the investment funds industry contributes significantly to Canadian economic growth and job creation.

About IFIC:

The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. The organization is proud to have served Canada’s mutual funds industry and its investors for more than 50 years.

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For more information:

Sara Clodman

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