Proactive Investors - Canadian investors bought $14.4 billion worth of foreign securities in June, the largest investment in seven months, which equates to a net outflow of funds of $1.9 billion for the month, according to Statistics Canada.
The government agency also revealed that foreign investors increased their holdings of Canadian securities by $12.6 billion in June, following what it called “two months of strong investment,” ending the second quarter with a net inflow of funds of $21.8 billion into the Canadian economy.
Canadian investors increased their exposure to US government bonds by $8.9 billion in June, after two months of divestment, while foreign investors bought $8.4 billion of Canadian federal government paper during the month, following a record $11.8 billion investment in May.
Statistics Canada added that overall, Canadian investors increased their holdings of foreign securities by $14.6 billion in the second quarter, after reducing them by $23.4 billion in 1Q.
Notably, non-resident investors also divested Canadian shares by about $3.9 billion for a seventh consecutive month.
As well, investment in Canada's financial technology sector was reduced to less than half in the first six months of 2023 from last year, according to a report from KPMG, citing high interest rates and concerns of a pending economic slowdown.
The accounting firm also noted that from January to June 2023, investments, including venture capital, private equity and merger and acquisition activity, totaled $353.7 million across 57 transactions.