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Record inflows for global thematic funds but Canadians remain cautious

Last year began with an inflow of $755 million to Canadian thematic funds in the first quarter, but fell to less than $200 million for each of the other three quarters. With investments of over $1 billion, this was more than double the previous year.

Overall, 2021 saw a record number of launches with 589 new thematic funds, which is higher than the previous record of 271 in 2020. Canada had 23 debuts.

“In recent years, we have seen a dramatic increase in the popularity of thematic funds globally,” said Kenneth Lamont, senior manager research analyst at Morningstar. “Our data shows that the assets of these funds are rising to record levels around the world, and as the menu of themed funds continues to expand, there has been increased investor demand for clarity and guidance.”

most popular fund

Morningstar’s Global Thematic Funds Landscape Report shows that funds tracking multiple technical disciplines are the most popular thematic funds.

Canadian investors backed social, physical world and technology focused funds. The energy transition topics were by far the largest by AUM.

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