News Release

IFIC Welcomes CSA Relief on Short-Term Borrowing Limits for Mutual Funds Investing in Fixed Income

April 17, 2020 (Toronto) – The Investment Funds Institute of Canada (IFIC) today welcomed the Canadian Securities Administrators’ (CSA) decision to temporarily increase short-term borrowing limits for mutual funds that invest in fixed income securities.

“This blanket relief provides fund managers with important flexibility, enabling them to better manage their fixed income portfolios to the benefit of their investors in the midst of the market volatility arising from the pandemic,” said Paul Bourque, President and CEO, IFIC. “The industry appreciates the CSA quickly assessing and acting on this and other market-wide issues as they arise.”

The temporary borrowing limit increase from 5% to 10% of a fund’s net asset value can assist fund managers as they seek to satisfy redemption requests at a time when fixed income markets are experiencing reduced liquidity.

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

For more information, please contact:

Pira Kumarasamy
Senior Manager, Communications and Public Affairs
pkumarasamy@ific.ca
416-309-2317