Foreign investors trimmed their holdings of Canadian securities by CAD 2.8 billion in May 2025 - less than the expected CAD 7.3 billion decline - marking a fourth consecutive month of outflows. The reduction was driven by a CAD 11.4 billion divestment from Canadian equities, with broad-based selling led by the energy and mining, corporate management, and manufacturing sectors. Investors also withdrew CAD 4.5 billion from money market instruments, primarily from Government of Canada paper (-CAD 4.0 billion). In contrast, they acquired CAD 13.1 billion in Canadian bonds, rebounding from a CAD 25.1 billion outflow in April. Bond purchases were concentrated in provincial (+CAD 8.0 billion) and federal (+CAD 6.9 billion) securities, partially offset by a CAD 4.2 billion divestment in private corporate bonds. Meanwhile, Canadian investors acquired CAD 13.4 billion of foreign securities in May, higher than the CAD 4.1 billion investment in April, led by purchases of US shares.