2006 fund sales expected to come in at $21 billion

December capped off another strong year for mutual fund sales in Canada, according to preliminary data from IFIC.

Net sales for the month are expected to be between $3 billion and $3.5 billion, compared to $1.7 billion in December, 2005. If the numbers hold up when IFIC releases its final tally later this month, net sales for 2006 will be $20.8 billion.

“Preliminary estimates for December indicate net sales reached $3.3 billion, the highest net sales for a December since 1996,” said Susan Yellin, IFIC’s director of communications. Total net sales for all of 2006 were around $21 billion, down from 2005’s total of $23.4 billion. “But sales in November and December 2006 — the traditional start of the RRSP season — outpaced the same two months in 2005,” Yellin added.

IFIC also estimates that net assets of the industry at the end of December will be in the range of $657 to $662 billion, up approximately 2.2% from November.

Among firms, RBC led the pack with $546 million in net sales, followed closely by TD, at $536 million.

CI Financial, which does not report to IFIC, was third, with net sales of $292 million in December and $2.2 billion for the year. “CI had another excellent year in 2006, with double-digit asset growth and strong net sales,” said Stephen A. MacPhail, CI’s president and chief operating officer. “Our net sales level has made CI the top-selling non-bank fund company and the third best-selling fund company overall.”

CIBC Asset Management reported $207 million in net sales and AGF continued its winning ways, with $182 million in sales last month. “In the final three months of calendar 2006 our net sales of long term funds totalled $566.8 million” said AGF chair Blake Goldring, pointing to the firm’s emphasis on international investing as one of the main reasons for its recent strong numbers.

There were only a few laggards last month, all with relatively small net redemptions. AIC was off $47 million, Altamira dropped $31 million and AIM Trimark’s redemptions were $29 million.

Filed by Doug Watt, Advisor.ca, doug.watt@advisor.rogers.com