February fund sales close to $5 billion

It’s been a strong RRSP season for the mutual fund industry, with IFIC estimating February net sales of about $4.7 billion dollars. Add January’s net sales of $1.6 billion, and the numbers for the first two months of 2006 will likely be even better than last year.

Based on a sample of preliminary data from some of its members, net new sales are estimated to be between $4.4 billion and $5 billion, IFIC said Thursday. Last year, February’s net sales were $5.3 billion, the best figures for that month since 2000. And with RRSP season ending March 1, the solid sales numbers could continue this month.

“Long-term funds were again the mutual funds of choice in February,” said Joanne De Laurentiis, who took over from Tom Hockin as IFIC president in January. “In total, the $6.3 billion in net new sales in January and February of this year top the $6 billion in net new sales that took place during the same two months of last year.”

IFIC estimates that net assets of the industry at the end of February will be in the range of $586 to $591 billion, up 0.3% from last month’s total.

Bank firms were again at the top of the heap, led by RBC Asset Management, whose net sales for the month totalled $1.16 billion.

For February, net sales of RBC Select Portfolios totalled $341 million. Top selling funds include the RBC Dividend Fund with $225 million in net sales, the RBC O’Shaughnessy International Equity Fund, at $131 million and the RBC Balanced Fund, $127 million.

“We are particularly pleased with the breadth of our RRSP season sales as investors, working with their advisors, chose to invest in more portfolio solutions and U.S. and International equities than last year,” said Brenda Vince, president, RBC Asset Management.

Other top performers in February included TD Asset Management, with $683 million in new sales, BMO, at $513 million and CI, at $439 million.

AGF rebounded from a lengthy run of redemptions, reporting net sales of $53 million. “Achieving positive net sales in February 2006 is a significant milestone,” said AGF president Blake Goldring in a separate news release. “We are delighted with this result but there is more work ahead as we continue to diligently execute our plan.”

Other firms weren’t so fortunate. AIM Trimark was in net redemptions to the tune of $289 million and AIC’s losing streak continued, with outflows of $148 million.

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