Fund sales see some recovery: IFIC

Sales of mutual funds rebounded in February, but that may be cold comfort — January was dubbed the worst month ever. According to preliminary estimates from the Investment Funds Institute of Canada, net sales rang in at between $5.9 billion and $6.5 billion.

“Canadian investors have sent a signal that they are still committed to RRSP investment in 2008.” said Pat Dunwoody, vice-president of member services and communications with IFIC. “In addition, and in sharp contrast to January, investors have decided once again to look longer term with roughly 50% of estimated February inflows going to long-term funds.”

Total industry assets under management at the end of February are estimated to have been between $676.2 billion and $681.2 billion, up 1.06% from January’s total of $671.6 billion.

On Monday CI Financial announced net long-term fund sales of $415 million, with another $98 million in net inflows to its money market funds. Gross sales across its various lines totaled $1.2 billion.

“It was an excellent month, with net sales exceeding our expectations,” said Stephen MacPhail, president of CI. “The investment climate has improved since January, though the outlook remains uncertain. CI has benefited from its strong and diverse product lineup, which generates consistent sales.”

Mackenzie Financial reported total gross sales of $695.5 million, but redemptions wiped out almost all of that, leaving the firm with just $19 million in net new money. Long-term funds were in net redemptions totalling $17.3 million, while money markets saw net inflows of $36.3 million.

On Tuesday, AGF Management announced net long-term fund sales of $31.4 million on gross sales of $420.4 million. Net sales of money market funds brought in another $4 million.

“February sales of long-term funds, while positive, were slow compared to 2007 as investors remained cautious,” said Blake Goldring, chairman and CEO of AGF Management. “During these periods of market uncertainty, AGF is well-positioned for future success, remaining focused on our strong fundamentals and long-term objectives.”

Desjardins Funds posted net sales of $132.1 million, although the firm did not break that total down between long-term funds and money markets.

“As was the case for the whole of the mutual fund industry, we experienced a slowdown at the beginning of the year caused by blips in the stock markets,” said Marc Dubuc, vice-president of marketing for Desjardins Funds. “However, February proved to be more reassuring, which indicates that many investors have understood that it was in their best interest to be present on the markets if they wish to eventually benefit from an upswing.”

Once again, RBC Asset Management blew away its competition, with its long-term funds pulling in $785 million in net new money, while the bank’s money market offerings raked in a whopping $1.4 billion.

“Packaged solution sales remained strong through February, and shows that our customers, and the advisors we work with, understand that the best way to be a successful investor is to make smart, well-diversified investment choices,” said Brenda Vince, president, RBC Asset Management. “What is even more encouraging is that despite market uncertainty and volatility, more people made RSP contributions at RBC this year than in 2007.”

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com