IFIC reports positive fund sales in June

(July 5, 2005) The mutual fund industry appears to have attracted between $1.5 billion and $2.0 billion in net new investment in June, according to preliminary data from the Investment Funds Institute of Canada (IFIC).

“Typically, investors wind down during the summer, but last month’s sales promise to be the best June we’ve had since June of 1998,” said Tom Hockin, president and CEO of IFIC. “Investors appear to have taken the time to consider their investment options and have selected mutual funds, with their long-term growth potential, diversification and professional management, as the best place to put their investment dollars.”

IFIC estimates net assets under administration for the industry to be between $524 billion and $529 billion, up approximately 1.2% from last month’s total of $520.1 billion.

Among those fund companies that report early sales data, CI Mutual Funds posted the best net sales, at $506 million. TD Mutual Funds and RBC Asset Management round out the top three with net sales totals of $474 million and $431 million, respectively.

The poorest sales data in the report comes from Fidelity, which saw net redemptions of $614 million, followed AIC, with net redemptions of $380 million.

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