Fund sales suffer late summer slump

(September 2, 2004) Mutual fund sales fell into net redemptions in August for the first time in nearly a year, according to IFIC’s preliminary data.

Based on a sample of data from IFIC members, net sales for August are estimated to be between minus $250 million and $150 million, IFIC said today.

“Net redemptions for the month of August are expected to be approximately $50 million,” said IFIC president Tom Hockin, adding that the majority of the redemptions came from money market funds.

Mutual fund sales haven’t been in negative territory since September, 2003.

Industry assets are expected to be around $467 billion in August, down 0.4% from the previous month.

IGM Financial, the country’s largest fund complex, with $78 billion in assets, reported net redemptions of $20 million last month. While both Investors Group and Mackenzie Financial lost ground in August, reporting $37 million and $1 million, respectively, in net redemptions, Investment Planning Counsel of Canada had net sales of nearly $18 million.

Fidelity and AIC suffered the largest net redemptions last month, while RBC, AIM-Trimark, BMO and Brandes were among those in positive territory.

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