Fund sales slip again in November

(December 3, 2002) The Investment Funds Institute of Canada is estimating another decline in mutual fund sales for November. Preliminary figures suggest a drop in net sales of between $500 million and $900 million.

Still, that’s an improvement from October, says IFIC president and CEO Tom Hockin, when mutual funds saw $1.1 billion walk out the door. “Net new sales for November increased by approximately $400 million from the previous month,” Hockin said. Mutual funds have been in net redemption since April.

In addition, Hockin said, fund assets should increase 3.1% in November, to roughly $400 billion, thanks to improving stock markets.

Redemptions appear to be concentrated in money-market funds. Mackenzie Financial reported redemptions in short-term funds, while long-term equity and bond funds have seen net sales.

Similarly, RBC Funds reported a massive decline in money-market assets, and growing long-term fund sales. RBC Funds president Brenda Vince attributes the drop in money-market assets in part to a renewed interest in GICs.

Still, companies without sizeable money-market funds also saw significant redemptions. RBC saw an outflow of $378 million, followed by AGF with $212 million and Investors Group with $190 million. CI Funds registered a $241 million inflow because of the conversion of $297 in segregated funds into mutual funds.

Among the companies with net inflows, AIM gained $125 million, Philips Hager & North $88 million and Brandes Investment Partners $59 million. Most of the smaller fund complexes also posted net sales, including Northwest, Acuity, Maestral, Mavrix and Meritas.

Filed by Scot Blythe, Advisor.ca, sblythe@advisor.ca.

(12/03/02)