Canada's international transactions in securities, November 2024

Canadian investors increased their exposure to foreign securities by $17.8 billion in November, the highest investment since March 2024. Meanwhile, foreign investors acquired $16.4 billion of Canadian securities, led by an unprecedented investment in money market instruments.

As a result, international transactions in securities generated a net outflow of funds of $1.4 billion from the Canadian economy in November, following two consecutive months of strong net inflows of funds.

Chart 1: Canada's international transactions in securities

Source: Table 36-10-0028-01.

Canadian investment in foreign securities resumes

Canadian investment in foreign securities reached $17.8 billion in November, following a $2.7 billion divestment in October. The activity in November marked the highest investment since March 2024.

In November, Canadian investors acquired $11.9 billion of foreign debt securities, led by a $10.3 billion investment in bonds. This investment was composed of $6.7 billion of non-US foreign bonds and $3.6 billion of US bonds.

Investors increased their exposure to foreign equities by $5.9 billion in November, following two consecutive months of divestment. The investment largely targeted US shares (+$5.1 billion).

US share prices, as measured by the Standard & Poor's composite index, were up by 5.7% in November, following a 1.0% decline in October.

Chart 2: Canadian investment in foreign equity and investment fund shares

Source: Table 36-10-0028-01.

Record foreign investment in Canadian money market instruments

Foreign investors acquired $16.4 billion of Canadian securities in November, led by purchases of debt securities. Acquisitions of debt securities totalled $25.2 billion, with most of the investment being in federal government instruments.

Foreign investors increased their holdings of Canadian money market instruments by an unprecedented $19.5 billion in November, led by strong purchases of Government of Canada Treasury bills (+$15.3 billion). Foreign acquisitions of provincial (+$2.3 billion) and private corporate (+$2.7 billion) paper also contributed to the activity.

Meanwhile, non-resident investors increased their exposure to Canadian bonds by $5.7 billion in November, their lowest monthly investment in 2024. The investment was mainly in federal government bonds (+$7.1 billion). Foreign investment in private corporate bonds slowed from $8.4 billion in October to $1.3 billion in November. On a year-to-date basis, foreign investors have acquired $191.6 billion of Canadian bonds in 2024, compared with $74.9 billion over the same period in 2023. By type of bond, over half ($107.9 billion) of foreign acquisitions so far in 2024 have been in government bonds.

Chart 3: Foreign investment in federal government debt securities

Source: Table 36-10-0028-01.

Non-resident investors decreased their exposure to Canadian shares by $8.8 billion in November. This divestment followed two consecutive months of notable investment totalling $24.7 billion. The foreign divestment in November was driven by sales on the secondary market and, to a lesser extent, redemptions of portfolio shares resulting from merger and acquisition activities.

Chart 4: Foreign investment in Canadian equity and investment fund shares

Source: Table 36-10-0028-01.

Table 1: Canada's international transactions in securities