Foreign investors turned back to Canadian securities in November, putting an end to three consecutive months of divestments. According to Statistics Canada, nonresident investors purchased a net 11.43 billion Canadian dollars ($8.47 billion) worth of Canadian securities during the month.
The agency reported that foreign investors added C$15.9 billion of Canadian debt securities to their portfolios, a significant shift after three months of divestment totaling approximately C$33.2 billion. The largest investment came in the form of C$9.7 billion in federal government debt securities. Furthermore, non-resident investors acquired $7.75 billion of Canadian corporate bonds, mainly new bonds denominated in U.S. dollars, issued by companies in the financial and transportation sectors.
On the other hand, non-resident holdings of Canadian shares declined by C$4.47 billion in November, marking the 10th consecutive month of divestment in 2023, following sales of C$2.21 billion the previous month.
Canadian investors, meanwhile, bought C$12.53 billion in foreign securities during November. Notably, Statistics Canada highlighted an unprecedented investment in U.S. government bonds. Canadians added about C$10.1 billion worth of U.S. government bonds to their portfolios, focusing on longer-term instruments. Additionally, they invested approximately C$2.6 billion in non-U.S. foreign bonds, primarily government debt.
In terms of equities, Canadians reduced their holdings of foreign stocks by C$545 million, further adding to prior significant sales of equities.
Consequently, the international transactions resulted in a net outflow from the Canadian economy amounting to around C$1.1 billion in November.
Statistics Canada's monthly international securities report examines transactions in equity and investment fund shares, bonds, and money market instruments for both Canadian and foreign issues. It excludes transactions in equity and debt instruments between affiliated enterprises.