As a result, mutual fund managers enjoyed a record year in 2025, with more than $2.5 trillion worth of assets under management — an increase of 12.7% relative to the previous year.
The Securities and Investment Management Association’s 2025 Annual Statistics Report noted that the growth of Canadian mutual funds continued a three-year upward swing driven by positive net results and favourable market performance.
Top mutual fund companies delivered extraordinary numbers. PIMCO had 100% of its assets rank in the first and second quartile according to Morningstar Direct. Lysander Funds Ltd. had 91.45% of its assets in the first and second quartile.
Our firm-by-firm review:
Lysander Funds Ltd.
“Against the backdrop of elevated valuations in risk-assets, our fixed income funds were generally positioned with greater tilts towards downside protection and liquidity,” said Ian Marthinsen, a portfolio manager at Lysander Funds Ltd. “In equity, to better facilitate diversification of investors’ portfolios, Lysander launched several funds focused on the lower capitalization spectrum of both Canadian and U.S. markets.”
“In 2026, elevated valuations, macroeconomic and geopolitical uncertainties remain pervasive risks,” he added.
The asset manager had 91.5% of its funds in Morningstar Direct’s first and second quartile.
Capital Group Canada
“Last year, asset and wealth management firms continued to consolidate, with buyers aiming for greater operational scale while sellers sought to leave the business or shift their attention to other markets,” said Rick Headrick, president of Capital Group Canada. “Capital Group has always been privately held and places a high value on its culture, allowing us to dedicate our efforts solely to clients and money management without distraction.”
The firm “saw significant inflows into mutual funds, alongside robust growth in ETFs,” Headrick said.
Capital Group Canada had 89.6% of its funds in the first and second quartile.
MD Financial Management Inc.
Craig Maddock, vice-president, senior portfolio manager & head of multi-asset management at MD Financial Management, noted that tightening credit spreads and selective exposure to lower investment-grade and high-yield credits factored in his firm’s results. Plus, “Hillsdale Canadian mega-cap and small-cap strategies added substantial value, especially through exposure to gold and financials.”
MD Group had 37.74% of its assets in the first and second quartiles, according to Morningstar Direct.
“MD Strategic Opportunities Fund lagged its benchmark despite positive returns,” Maddock said. “And global real estate private strategies continued to show muted value creation, with returns closer to capital preservation than growth.”
CI Investments
“Over the past year, our investment approach was shaped by an unusually volatile backdrop in which trade disruptions, political developments and geopolitical shocks frequently dominated headlines,” said Lorne Gavsie, head of macroeconomic and FX strategy at CI Global Asset Management.
“One of the key lessons of the period was the importance of discipline. Markets ultimately responded to fundamentals, liquidity and earnings rather than sentiment,” he said. “Our focus remained on maintaining an objective framework through bouts of volatility rather than reacting tactically to short-term noise.”
His outlook this year “remains constructive, though not complacent,” he said.
“Economic uncertainty has moderated, policy support has broadened and fiscal engagement across major economies is providing a more supportive backdrop for growth. At the same time, the global economy is moving toward greater self-sufficiency and re-engineered supply chains, a shift that is likely to shape the next phase of the cycle,” Gavsie said.
“In this environment, success will depend on disciplined diversification, valuation awareness and active decision‑making, with a focus on capturing opportunities created by change rather than being unsettled by it.”
CI Investments had 54.2% of its funds in the top two quartiles.
BMO Investments
BMO Investments saw its percentage of assets in the first and second quartiles come in at 40.5%, according to Morningstar Direct. “In 2025, we maintained a bullish outlook on markets despite the noise surrounding tariffs,” Sadiq Adatia, chief investment officer with BMO Global Asset Management said. “We believed that the underlying fundamentals of the global economy, particularly in the U.S., were strong. Earnings were relatively robust, consumers continued to spend and inflation was not a significant concern.”
Adatia said the firm undertook “a pullback in technology (particularly AI-related) investments, while safe-haven, mature businesses outperformed. Additionally, the trend of diversifying away from the U.S. has continued, with a notable shift towards emerging markets this year.”
This year, Adatia plans to “remain well-diversified across regions and sectors, maintain exposure to gold for defensive reasons and stay overweight in equities despite recent volatility, as the fundamentals remain strong.”
Top mutual fund performers in 2025
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