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In turn, uncertainty about the markets translated into a shift toward safer and more diversified fund categories.
“We continue to see strength coming from long-term investors who are predominantly investing in fund-of-fund, balanced fund and other types of portfolio/total solution products despite net redemptions in August,” says Pat Dunwoody, IFIC’s vice-president of member services and communications. “Long-term investors purchased $787 million of fund-of-funds in August, proving the axiom that it is time in the market, not timing the market, that is prudent when there is increased uncertainty.”
Luukko says global balanced funds were the most popular long-term investments, followed by global neutral balanced. He suspects much of this is due to the fact that greater value can be found in global markets than in Canada, which has less potential growth. As a result, investors continued their shift away from domestic funds.
“Other than money market, the most redeemed category was Canadian equity balanced. It was unusual to see that category way down because balanced funds in general have been quite popular for some time,” Luukko says. “But if you look at the other most-redeemed categories in the long-term category, it’s followed by Canadian equity and Canadian focused categories.
“Investors may be prudent in deploying their money into non-Canadian markets, given that our dollar is fairly high by recent historical trends and our markets have been performing better than the other world markets.”
Very few specific fund companies had much to cheer about. In fact, only a handful managed to avoid the net redemption trend. Scotia Securities managed to distinguish itself from the rest of the field, as money market redemptions couldn’t undo long-term fund sales of $144 million. The bank-owned manufacturer was able to finish the month with more than $120 million in net new sales.
IA Clarington also had an impressive month, with $88 million in net new sales, followed by Desjardins, with $76 million.
August was a stark reversal of fortune for two bank-owned titans: RBC Asset Management and TD Asset Management. TD in particular took a beating in both its money market and long-term sales categories to finish the month with $543 million in redemptions. RBC ended August with $62 million in redemptions, although it did manage $50 million in net long-term fund sales.
Filed by Mark Noble, Advisor.ca, mark.noble@advisor.rogers.com
(09/17/07)
“The equity markets as a whole suffered some fallout from the sub-prime mortgage problems in the United States. This left most of the main equity categories in negative territory last month in terms of their investment returns,” Luukko says. “For instance, our global equity mutual fund index was down 1.5%, and the international fund index was down 2.4%. The Canadian equity category was roughly neutral.”
In turn, uncertainty about the markets translated into a shift toward safer and more diversified fund categories.
“We continue to see strength coming from long-term investors who are predominantly investing in fund-of-fund, balanced fund and other types of portfolio/total solution products despite net redemptions in August,” says Pat Dunwoody, IFIC’s vice-president of member services and communications. “Long-term investors purchased $787 million of fund-of-funds in August, proving the axiom that it is time in the market, not timing the market, that is prudent when there is increased uncertainty.”
Luukko says global balanced funds were the most popular long-term investments, followed by global neutral balanced. He suspects much of this is due to the fact that greater value can be found in global markets than in Canada, which has less potential growth. As a result, investors continued their shift away from domestic funds.
“Other than money market, the most redeemed category was Canadian equity balanced. It was unusual to see that category way down because balanced funds in general have been quite popular for some time,” Luukko says. “But if you look at the other most-redeemed categories in the long-term category, it’s followed by Canadian equity and Canadian focused categories.
“Investors may be prudent in deploying their money into non-Canadian markets, given that our dollar is fairly high by recent historical trends and our markets have been performing better than the other world markets.”
Very few specific fund companies had much to cheer about. In fact, only a handful managed to avoid the net redemption trend. Scotia Securities managed to distinguish itself from the rest of the field, as money market redemptions couldn’t undo long-term fund sales of $144 million. The bank-owned manufacturer was able to finish the month with more than $120 million in net new sales.
IA Clarington also had an impressive month, with $88 million in net new sales, followed by Desjardins, with $76 million.
August was a stark reversal of fortune for two bank-owned titans: RBC Asset Management and TD Asset Management. TD in particular took a beating in both its money market and long-term sales categories to finish the month with $543 million in redemptions. RBC ended August with $62 million in redemptions, although it did manage $50 million in net long-term fund sales.
Filed by Mark Noble, Advisor.ca, mark.noble@advisor.rogers.com
(09/17/07)
U.S. sub-prime concerns also caused volatility in most of the world’s stock markets, dragging down the value of many equity holdings. Total mutual fund assets declined in August to $695.9 billion from $703.5 billion in July.
“The equity markets as a whole suffered some fallout from the sub-prime mortgage problems in the United States. This left most of the main equity categories in negative territory last month in terms of their investment returns,” Luukko says. “For instance, our global equity mutual fund index was down 1.5%, and the international fund index was down 2.4%. The Canadian equity category was roughly neutral.”
In turn, uncertainty about the markets translated into a shift toward safer and more diversified fund categories.
“We continue to see strength coming from long-term investors who are predominantly investing in fund-of-fund, balanced fund and other types of portfolio/total solution products despite net redemptions in August,” says Pat Dunwoody, IFIC’s vice-president of member services and communications. “Long-term investors purchased $787 million of fund-of-funds in August, proving the axiom that it is time in the market, not timing the market, that is prudent when there is increased uncertainty.”
Luukko says global balanced funds were the most popular long-term investments, followed by global neutral balanced. He suspects much of this is due to the fact that greater value can be found in global markets than in Canada, which has less potential growth. As a result, investors continued their shift away from domestic funds.
“Other than money market, the most redeemed category was Canadian equity balanced. It was unusual to see that category way down because balanced funds in general have been quite popular for some time,” Luukko says. “But if you look at the other most-redeemed categories in the long-term category, it’s followed by Canadian equity and Canadian focused categories.
“Investors may be prudent in deploying their money into non-Canadian markets, given that our dollar is fairly high by recent historical trends and our markets have been performing better than the other world markets.”
Very few specific fund companies had much to cheer about. In fact, only a handful managed to avoid the net redemption trend. Scotia Securities managed to distinguish itself from the rest of the field, as money market redemptions couldn’t undo long-term fund sales of $144 million. The bank-owned manufacturer was able to finish the month with more than $120 million in net new sales.
IA Clarington also had an impressive month, with $88 million in net new sales, followed by Desjardins, with $76 million.
August was a stark reversal of fortune for two bank-owned titans: RBC Asset Management and TD Asset Management. TD in particular took a beating in both its money market and long-term sales categories to finish the month with $543 million in redemptions. RBC ended August with $62 million in redemptions, although it did manage $50 million in net long-term fund sales.
Filed by Mark Noble, Advisor.ca, mark.noble@advisor.rogers.com
(09/17/07)
“A Morningstar study found the vast majority of these money market funds did not hold these securities, nor have any investors suffered losses as a result of these holdings,” Luukko says. “Nonetheless, concern about the quality of ABCP holdings created some jitters on the part of investors, so it was the most redeemed category in the month of August, at $868 million. This represented more than half of all the net redemptions.”
U.S. sub-prime concerns also caused volatility in most of the world’s stock markets, dragging down the value of many equity holdings. Total mutual fund assets declined in August to $695.9 billion from $703.5 billion in July.
“The equity markets as a whole suffered some fallout from the sub-prime mortgage problems in the United States. This left most of the main equity categories in negative territory last month in terms of their investment returns,” Luukko says. “For instance, our global equity mutual fund index was down 1.5%, and the international fund index was down 2.4%. The Canadian equity category was roughly neutral.”
In turn, uncertainty about the markets translated into a shift toward safer and more diversified fund categories.
“We continue to see strength coming from long-term investors who are predominantly investing in fund-of-fund, balanced fund and other types of portfolio/total solution products despite net redemptions in August,” says Pat Dunwoody, IFIC’s vice-president of member services and communications. “Long-term investors purchased $787 million of fund-of-funds in August, proving the axiom that it is time in the market, not timing the market, that is prudent when there is increased uncertainty.”
Luukko says global balanced funds were the most popular long-term investments, followed by global neutral balanced. He suspects much of this is due to the fact that greater value can be found in global markets than in Canada, which has less potential growth. As a result, investors continued their shift away from domestic funds.
“Other than money market, the most redeemed category was Canadian equity balanced. It was unusual to see that category way down because balanced funds in general have been quite popular for some time,” Luukko says. “But if you look at the other most-redeemed categories in the long-term category, it’s followed by Canadian equity and Canadian focused categories.
“Investors may be prudent in deploying their money into non-Canadian markets, given that our dollar is fairly high by recent historical trends and our markets have been performing better than the other world markets.”
Very few specific fund companies had much to cheer about. In fact, only a handful managed to avoid the net redemption trend. Scotia Securities managed to distinguish itself from the rest of the field, as money market redemptions couldn’t undo long-term fund sales of $144 million. The bank-owned manufacturer was able to finish the month with more than $120 million in net new sales.
IA Clarington also had an impressive month, with $88 million in net new sales, followed by Desjardins, with $76 million.
August was a stark reversal of fortune for two bank-owned titans: RBC Asset Management and TD Asset Management. TD in particular took a beating in both its money market and long-term sales categories to finish the month with $543 million in redemptions. RBC ended August with $62 million in redemptions, although it did manage $50 million in net long-term fund sales.
Filed by Mark Noble, Advisor.ca, mark.noble@advisor.rogers.com
(09/17/07)
“The industry has had an impressive streak of nearly three years of consecutive monthly net new sales,” says Rudy Luukko, investment funds editor for Morningstar Canada. “Normally, August is a slow month, but there were a number of unusual factors that pulled the industry into net redemptions.”
Luukko says the foremost of those was the concern over non-bank asset-backed commercial paper holdings in Canadian money market funds, which were believed to have significant exposure to U.S. sub-prime mortgages.
“A Morningstar study found the vast majority of these money market funds did not hold these securities, nor have any investors suffered losses as a result of these holdings,” Luukko says. “Nonetheless, concern about the quality of ABCP holdings created some jitters on the part of investors, so it was the most redeemed category in the month of August, at $868 million. This represented more than half of all the net redemptions.”
U.S. sub-prime concerns also caused volatility in most of the world’s stock markets, dragging down the value of many equity holdings. Total mutual fund assets declined in August to $695.9 billion from $703.5 billion in July.
“The equity markets as a whole suffered some fallout from the sub-prime mortgage problems in the United States. This left most of the main equity categories in negative territory last month in terms of their investment returns,” Luukko says. “For instance, our global equity mutual fund index was down 1.5%, and the international fund index was down 2.4%. The Canadian equity category was roughly neutral.”
In turn, uncertainty about the markets translated into a shift toward safer and more diversified fund categories.
“We continue to see strength coming from long-term investors who are predominantly investing in fund-of-fund, balanced fund and other types of portfolio/total solution products despite net redemptions in August,” says Pat Dunwoody, IFIC’s vice-president of member services and communications. “Long-term investors purchased $787 million of fund-of-funds in August, proving the axiom that it is time in the market, not timing the market, that is prudent when there is increased uncertainty.”
Luukko says global balanced funds were the most popular long-term investments, followed by global neutral balanced. He suspects much of this is due to the fact that greater value can be found in global markets than in Canada, which has less potential growth. As a result, investors continued their shift away from domestic funds.
“Other than money market, the most redeemed category was Canadian equity balanced. It was unusual to see that category way down because balanced funds in general have been quite popular for some time,” Luukko says. “But if you look at the other most-redeemed categories in the long-term category, it’s followed by Canadian equity and Canadian focused categories.
“Investors may be prudent in deploying their money into non-Canadian markets, given that our dollar is fairly high by recent historical trends and our markets have been performing better than the other world markets.”
Very few specific fund companies had much to cheer about. In fact, only a handful managed to avoid the net redemption trend. Scotia Securities managed to distinguish itself from the rest of the field, as money market redemptions couldn’t undo long-term fund sales of $144 million. The bank-owned manufacturer was able to finish the month with more than $120 million in net new sales.
IA Clarington also had an impressive month, with $88 million in net new sales, followed by Desjardins, with $76 million.
August was a stark reversal of fortune for two bank-owned titans: RBC Asset Management and TD Asset Management. TD in particular took a beating in both its money market and long-term sales categories to finish the month with $543 million in redemptions. RBC ended August with $62 million in redemptions, although it did manage $50 million in net long-term fund sales.
Filed by Mark Noble, Advisor.ca, mark.noble@advisor.rogers.com
(09/17/07)
 |
For the first time in almost three years, the Canadian mutual fund industry finished a month in net redemptions, according to the latest statistics from the Investment Funds Institute of Canada.
The industry finished August in net redemptions, totalling $1.5 billion, IFIC reports. The last time the industry finished a month in the red was in October 2004.
“The industry has had an impressive streak of nearly three years of consecutive monthly net new sales,” says Rudy Luukko, investment funds editor for Morningstar Canada. “Normally, August is a slow month, but there were a number of unusual factors that pulled the industry into net redemptions.”
Luukko says the foremost of those was the concern over non-bank asset-backed commercial paper holdings in Canadian money market funds, which were believed to have significant exposure to U.S. sub-prime mortgages.
“A Morningstar study found the vast majority of these money market funds did not hold these securities, nor have any investors suffered losses as a result of these holdings,” Luukko says. “Nonetheless, concern about the quality of ABCP holdings created some jitters on the part of investors, so it was the most redeemed category in the month of August, at $868 million. This represented more than half of all the net redemptions.”
U.S. sub-prime concerns also caused volatility in most of the world’s stock markets, dragging down the value of many equity holdings. Total mutual fund assets declined in August to $695.9 billion from $703.5 billion in July.
“The equity markets as a whole suffered some fallout from the sub-prime mortgage problems in the United States. This left most of the main equity categories in negative territory last month in terms of their investment returns,” Luukko says. “For instance, our global equity mutual fund index was down 1.5%, and the international fund index was down 2.4%. The Canadian equity category was roughly neutral.”
In turn, uncertainty about the markets translated into a shift toward safer and more diversified fund categories.
“We continue to see strength coming from long-term investors who are predominantly investing in fund-of-fund, balanced fund and other types of portfolio/total solution products despite net redemptions in August,” says Pat Dunwoody, IFIC’s vice-president of member services and communications. “Long-term investors purchased $787 million of fund-of-funds in August, proving the axiom that it is time in the market, not timing the market, that is prudent when there is increased uncertainty.”
Luukko says global balanced funds were the most popular long-term investments, followed by global neutral balanced. He suspects much of this is due to the fact that greater value can be found in global markets than in Canada, which has less potential growth. As a result, investors continued their shift away from domestic funds.
“Other than money market, the most redeemed category was Canadian equity balanced. It was unusual to see that category way down because balanced funds in general have been quite popular for some time,” Luukko says. “But if you look at the other most-redeemed categories in the long-term category, it’s followed by Canadian equity and Canadian focused categories.
“Investors may be prudent in deploying their money into non-Canadian markets, given that our dollar is fairly high by recent historical trends and our markets have been performing better than the other world markets.”
Very few specific fund companies had much to cheer about. In fact, only a handful managed to avoid the net redemption trend. Scotia Securities managed to distinguish itself from the rest of the field, as money market redemptions couldn’t undo long-term fund sales of $144 million. The bank-owned manufacturer was able to finish the month with more than $120 million in net new sales.
IA Clarington also had an impressive month, with $88 million in net new sales, followed by Desjardins, with $76 million.
August was a stark reversal of fortune for two bank-owned titans: RBC Asset Management and TD Asset Management. TD in particular took a beating in both its money market and long-term sales categories to finish the month with $543 million in redemptions. RBC ended August with $62 million in redemptions, although it did manage $50 million in net long-term fund sales.
Filed by Mark Noble, Advisor.ca, mark.noble@advisor.rogers.com
(09/17/07)
|
For the first time in almost three years, the Canadian mutual fund industry finished a month in net redemptions, according to the latest statistics from the Investment Funds Institute of Canada.
The industry finished August in net redemptions, totalling $1.5 billion, IFIC reports. The last time the industry finished a month in the red was in October 2004.
“The industry has had an impressive streak of nearly three years of consecutive monthly net new sales,” says Rudy Luukko, investment funds editor for Morningstar Canada. “Normally, August is a slow month, but there were a number of unusual factors that pulled the industry into net redemptions.”
Luukko says the foremost of those was the concern over non-bank asset-backed commercial paper holdings in Canadian money market funds, which were believed to have significant exposure to U.S. sub-prime mortgages.
“A Morningstar study found the vast majority of these money market funds did not hold these securities, nor have any investors suffered losses as a result of these holdings,” Luukko says. “Nonetheless, concern about the quality of ABCP holdings created some jitters on the part of investors, so it was the most redeemed category in the month of August, at $868 million. This represented more than half of all the net redemptions.”
U.S. sub-prime concerns also caused volatility in most of the world’s stock markets, dragging down the value of many equity holdings. Total mutual fund assets declined in August to $695.9 billion from $703.5 billion in July.
“The equity markets as a whole suffered some fallout from the sub-prime mortgage problems in the United States. This left most of the main equity categories in negative territory last month in terms of their investment returns,” Luukko says. “For instance, our global equity mutual fund index was down 1.5%, and the international fund index was down 2.4%. The Canadian equity category was roughly neutral.”
In turn, uncertainty about the markets translated into a shift toward safer and more diversified fund categories.
“We continue to see strength coming from long-term investors who are predominantly investing in fund-of-fund, balanced fund and other types of portfolio/total solution products despite net redemptions in August,” says Pat Dunwoody, IFIC’s vice-president of member services and communications. “Long-term investors purchased $787 million of fund-of-funds in August, proving the axiom that it is time in the market, not timing the market, that is prudent when there is increased uncertainty.”
Luukko says global balanced funds were the most popular long-term investments, followed by global neutral balanced. He suspects much of this is due to the fact that greater value can be found in global markets than in Canada, which has less potential growth. As a result, investors continued their shift away from domestic funds.
“Other than money market, the most redeemed category was Canadian equity balanced. It was unusual to see that category way down because balanced funds in general have been quite popular for some time,” Luukko says. “But if you look at the other most-redeemed categories in the long-term category, it’s followed by Canadian equity and Canadian focused categories.
“Investors may be prudent in deploying their money into non-Canadian markets, given that our dollar is fairly high by recent historical trends and our markets have been performing better than the other world markets.”
Very few specific fund companies had much to cheer about. In fact, only a handful managed to avoid the net redemption trend. Scotia Securities managed to distinguish itself from the rest of the field, as money market redemptions couldn’t undo long-term fund sales of $144 million. The bank-owned manufacturer was able to finish the month with more than $120 million in net new sales.
IA Clarington also had an impressive month, with $88 million in net new sales, followed by Desjardins, with $76 million.
August was a stark reversal of fortune for two bank-owned titans: RBC Asset Management and TD Asset Management. TD in particular took a beating in both its money market and long-term sales categories to finish the month with $543 million in redemptions. RBC ended August with $62 million in redemptions, although it did manage $50 million in net long-term fund sales.
Filed by Mark Noble, Advisor.ca, mark.noble@advisor.rogers.com
(09/17/07)
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