December caps solid year for fund sales

(January 5, 2005) December was a strong month for mutual fund sales, according to preliminary estimates released Wednesday by IFIC, wrapping up the best year the fund industry has seen since 2001.

Net sales for December are expected to be around $1.2 billion. Total sales for 2004 will be likely be $14.7 billion, says IFIC president Tom Hockin. February was the year’s best month, with $5 billion in sales. Only September and October saw net redemptions.

Mutual fund assets are estimated at $495 billion, up 3% from November and 13% higher for the year.

Among fund firms, the big banks led the way in December, with TD Asset Management reporting net sales of $575 million and RBC Asset Management at $339 million. Laggards included AIC, with $295 million in net redemptions, AGF down $246 million and Fidelity off $186 million.

Several fund companies have already reported their year-end results.

RBC Asset Management’s net sales for 2004 were $2.8 billion, including $3.9 billion in long-term net sales and $1.1 billion in money market net redemptions. “We are very pleased with these results as we head into one of the busiest times of the year for people making their RRSP contributions,” said RBC Asset Management president Brenda Vince.

CI’s net sales reached $1.4 billion in 2004, including $490 million at CI Mutual Funds, $538 million at Assante and $388 million at Skylon.

“Our strong sales in 2004 reflect the continued gains in global financial markets, improving investor confidence and the strength of our broad and diverse lineup of products and services,” said CI executive vice-president Stephen MacPhail.

At Mackenzie, net sales for 2004 totalled $824 million and the firm’s total assets under management rose 14% to $43 billion.

“The importance of long-term track records was reconfirmed as a number of our funds with a 30-year history dominated sales for much of 2004,” said David Feather, president of Mackenzie Financial Services.

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