Home Breadcrumb caret Industry News Breadcrumb caret Industry Money markets buoy fund sales: IFIC Mutual fund sales in July were positive, though difficult to gauge, with the Investment Funds Institute of Canada reporting a preliminary estimate of between $480 million and $980 million in net sales. “Though markets have been uncertain as of late, investors continue to invest in mutual funds, albeit money market funds,” said Pat Dunwoody, vice-president […] By Steven Lamb | August 6, 2008 | Last updated on August 6, 2008 2 min read Mutual fund sales in July were positive, though difficult to gauge, with the Investment Funds Institute of Canada reporting a preliminary estimate of between $480 million and $980 million in net sales. “Though markets have been uncertain as of late, investors continue to invest in mutual funds, albeit money market funds,” said Pat Dunwoody, vice-president of member services and communications with IFIC. “Most markets were either down or flat therefore industry assets under management were down by 2.11%.” Industry-wide, IFIC says long-term funds saw roughly $600 million in net redemptions. Money market funds, which earn much lower management fees, saw net in-flows of almost $1.5 billion. IFIC estimates industry assets for the month of July will be between $682.8 billion and $687.8 billion, down about 2.1% from June’s total of $700.1 billion. With positive sales, this decline can be attributed to market effect. On Tuesday, Morningstar Canada reported that only eight of the 42 mutual fund indices it tracks managed to earn a positive return. As usual, a handful of fund companies have released their own sales reports. Mackenzie Financial announced net redemptions of $92.4 million, on gross sales of $543.8 million. Investors withdrew $167.6 million from long-term funds, while investing $75.2 million in money market funds. Mackenzie’s assets under management fell from $64.6 billion to $59.3 billion, on a year over year basis. AGF Management reported $128.3 million in net redemptions of long-term funds, on gross sales of $196.0 million. Investors also pulled $3.5 million out of money market funds, for total net redemptions of $131.8 million. Related Stories Tough to make a buck in July: Morningstar Canadians play it safe in June: IFIC “Market volatility continues to impact gross sales of long-term mutual funds for the mutual fund industry,” said Blake Goldring, chairman and chief executive officer, AGF Management Limited. “On a positive note, our redemptions have remained relatively flat on a year-over-year basis, indicating that clients are committed to keeping invested funds in the market.” CI Financial reported that its CI Investments and United Financial subsidiaries posted net sales of $134 million in long-term funds, with an additional $62 million flowing into money markets. “CI is posting excellent sales for the traditionally slow summer season,” said Stephen MacPhail, president, CI Financial. The company reported $66.2 billion in assets under management, with total fee-earning assets of $99.3 billion as of July 31, 2008. RBC Asset Management reported net sales of $917 million, with $744 million of the total invested in money market funds. RBC’s Phillips, Hager & North subsidiary was hit by net redemptions totalling $239 million, including $234 million from long-term funds, and $5 million from money markets. Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com (08/06/08) Steven Lamb Save Stroke 1 Print Group 8 Share LI logo