Fund sales expected to top $1.6 billion

Preliminary data suggests that October was a strong month for the mutual fund industry, with IFIC estimating net sales of between $1.4 billion and $1.9 billion. Net sales came in at $1.1 billion in September.

However, October also marked a return by investors to long-term funds, says IFIC vice-president Pat Dunwoody. “Money market funds, which had been the fund of choice for the previous two months, brought in only about $400 million in October.”

By contrast, money market funds accounted for $929 million in net sales in September.

Among fund companies, the banks led the charge, including RBC Asset Management, with $510 million in net sales, TD Asset Management at $382 million, and CIBC Asset Management, coming in at $202 million.

“October was another solid month of sales for RBC Asset Management,” said David Richardson, vice-president, communications and enterprise sales. “Sales were led by the RBC Select Portfolios packaged solutions that have now surpassed $7 billion in assets under management.”

October Laggards included AIM Trimark, off $169 million and AIC, down $76 million.

IFIC also estimates that net assets of the industry at the end of October will be in the range of $627 to $632 billion, up about 3.3% from September.

(11/02/06)

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.