Fund sales robust in November

November, traditionally viewed as the beginning of RRSP season, looks to be a solid month for fund sales. According to IFIC’s preliminary estimates, net sales will be in the range of $2 billion to $2.5 billion.

That would make last month the strongest November since 2001, IFIC noted. “The profile of industry leaders in November is similar to recent months,” said IFIC president Tom Hockin, “Which leads one to conclude that these are long-term investors and that the expertise and diversity that underlie a mutual fund remain central to investors’ needs.”

Industry assets are expected to be around $553 billion, up 3% from last month. Among firms, the leaders include the big banks, with BMO at $348 million, RBC at $340 million, and TD at $323 million.

CI also had a good month, with net sales of $303 million. “These strong net sales made it our best November in six years and show that the momentum in our business continues to grow,” said CI chief operating officer Stephen MacPhail. “With gross sales of $9.6 billion for the year-to-date and net sales of $2.6 billion, CI is the top-selling non-bank fund company this year.”

AIC had net redemptions of $171 million and Scotia Securities was in negative territory to the tune of $176 million, however the firm notes that IFIC’s numbers do not include the majority of sales generated by the Scotia Partners Portfolios, which amounted to $123 million last month.

AGF, which reports sales independently, says it had net redemptions of $69.5 million in November.

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