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Notre-Dame Cathedral Reborn: A Testament to Resilience and Restoration

  After five years of meticulous reconstruction, the iconic Notre-Dame Cathedral is set to reopen its doors to the public on December 8, 2024. The reopening ceremony will take place on December 7, marking a significant milestone in the cathedral's history. The fire on April 15, 2019, caused extensive damage to the historic cathedral, collapsing its iconic spire and causing significant harm to its roof, stained-glass windows, and interior artworks. Despite initial doubts and estimates that the restoration could take up to 40 years, French President Emmanuel Macron's ambitious goal to complete the reconstruction within five years has been achieved. The restoration project, costing around $737 million, was funded by donations from 340,000 individuals across 150 countries. The project involved the efforts of 2,000 artisans and 250 companies, who worked tirelessly to restore the cathedral to its former glory. The new roof and spire have been built using 1,500 trees, including the ta...
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Investors Shift Focus: Canadian Mutual Funds and ETFs in the High-Interest Rate Era

 

Amid high interest rates and market volatility, Canadian investors have made significant adjustments to their investment portfolios. The spotlight is on both mutual funds and exchange-traded funds (ETFs) as they navigate this challenging landscape.

Over the past year, Canadian mutual funds experienced a rollercoaster of net redemptions. Investors pulled billions of dollars out, creating a trend that persisted for 11 consecutive months. The pattern began when the Bank of Canada initiated a series of interest rate hikes in March 2022. With short-term product rates reaching nearly six percent, many investors shifted toward more conservative investments. Additionally, market volatility played a role, affecting their willingness to invest in stock and bond funds.

Some notable net outflows from mutual funds include:

  • June 2022: A net withdrawal of $10.4 billion
  • September 2022: A net withdrawal of $9 billion
  • October 2023: A net withdrawal of $12.5 billion

In contrast to mutual funds, Canadian ETFs have maintained a more stable trajectory. While sales of ETFs have also slowed during this interest rate cycle, they have remained net positive. In 2023, ETFs saw net sales of $37.6 billion, slightly up from 2022 but down from their peak of $58.3 billion in 2021. These figures come from the Investment Funds Institute of Canada’s 2023 investment funds report.

The move from mutual funds to ETFs reflects a broader trend seen not only in Canada but also in the United States. Investors are shifting from more expensive mutual funds to the cost-effective alternative of ETFs. The appeal lies in the efficiency and flexibility of ETFs, which offer exposure to a diversified portfolio of assets at a lower cost.

As the high-interest rate era continues, investors will likely keep adjusting their strategies. The rise of ETFs and their ability to provide cost-effective diversification will remain a key factor in shaping the investment landscape.


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