Fund sales slow in June’s poor market

Canadian investors eased back on their mutual fund purchases in June, with net new sales ringing in at between $1.95 billion and $2.45 billion to work, according to preliminary data from the Investment Funds Institute of Canada.

“The recent slowdown in the markets brought mutual fund assets down slightly in June,” said Pat Dunwoody, vice-president, member services and communications. “Sales were down from the previous month to $2.2 billion, but still healthy for this time of year.”

Net assets held in the industry have fallen, however, due to the recent weakness in equity markets, falling about 0.7% from May’s total of 711.9 billion, to between $704 billion and $709 billion.

While industry-wide sales data will not firm up until mid-month, several firms have released their numbers individually.

AGF Management called this the best month of June in the company’s history, with gross sales of long-term funds of $492.9 million. Redemptions took a heavy toll, however, reducing net sales to $172.2 million.

Desjardins Funds announced net sales of $190 million during the month, bringing its year-to-date net sales to $1.4 billion.

Mackenzie Financial reported gross sales of $776.0 million, with net sales of $139.4 million. IGM Financial as a whole, which consists of Mackenzie, Counsel Group and Investors Group, posted net new sales totalling $286 million.

CI Financial also saw a large portion of its $911 million in gross sales wiped out, with net new sales totalling $142 million.

Sticking with the big players, RBC Asset Management announced net long-term fund sales of $372 million. The two top-selling funds were RBC Tax Managed Return Fund with $45 million in net sales and the RBC O’Shaughnessy International Equity Fund with $27 million in net sales.

TD Asset Management pulled in $255 million in new cash, while BMO Financial Group posted net new sales of $155 million. Dynamic Mutual Funds saw $130 million in new money, and IA Clarington sold $102 million in net new long-term funds.

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