Fund sales continue winning streak

(October 4, 2005) The mutual fund industry’s strong run of sales during the summer months spilled over in to fall, with IFIC today reporting preliminary net sales of between $1.6 billion and $2.1 billion in September.

August’s net sales were also around $1.8 billion and if the numbers hold up, this will be the best September the industry has seen in terms of sales since 1997, noted IFIC president Tom Hockin. “This proves the strong confidence Canadian consumers maintain in the inherent diversity within and the accessibility of a mutual fund.”

It’s been a solid year for fund sales. In fact, the industry hasn’t seen a month of net redemptions since October 2004. Industry assets now total more than $548 billion, IFIC estimates, up 0.7% from the previous month.

Among fund companies, RBC Asset Management again set the pace with $539 million in net new sales. “We are continuing to build on our summer momentum,” said RBC Asset Management President Brenda Vince. “As the fall is historically a time with high volumes of maturing GICs, we expect investors will increasingly look for investment solutions that maximize their tax-efficient income in this low interest rate environment.”

TD Asset Management, Phillips, Hager & North and BMO Funds also fared well, with $378 million, $242 million and $223 million in net new sales, respectively. AIC remained in net redemptions, to the tune of $201 million. CIBC and AIM Trimark were also in negative territory.

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