Mutual fund sales soft in August

Mutual fund sales took their usual seasonal dive in August, with estimates ranging from $150 million in net sales to $350 million in net redemptions, according to preliminary data compiled by the Investment Funds Institute of Canada (IFIC).

Net industry assets at the end of the month are estimated to have been between $607.6 billion and $612.6 billion up about 38% from the end of July.

“With mixed or weaker than expected economic signals in most markets and a tendency among investors to be focused on their summer breaks at this time of year, we saw a drop in both long-term fund net sales and money market fund net redemptions in August,” said Pat Dunwoody, IFIC vice-president of member services and communications.

“However, with long-term fund sales at $16 billion year-to-date, the trend for 2010 remains robust and is in-line with industry sales experience in the 2004-2006 pre-downturn periods.”

DundeeWealth continued as one of the sales leaders, with net sales of $102 million. Total mutual fund assets ended the month at $29.9 billion, up from $29.3 billion at the end of July.

Fidelity reported $78 million in total net sales, with assets under management hitting $45.6 billion at month end.

CI Financial slipped into net redemptions in August, totalling $15 million, on gross retail sales of $587 million. Total assets under management at month end were $66.7 billion, down 0.5% over the month.

Investors Group reported net redemptions totalling $76.3 million, with a net $59.9 million pulled from long term funds and $16.4 million more from money market funds. Mutual fund assets under management were $56.9-billion at the end of August.

AGF Management reported total net redemptions of $87.7 million, with $76 million coming out of long term funds and $11.7 million withdrawn from money market funds. Total assets under management ended the month at $42.6 billion.

Mackenzie Financial reported total net redemptions of $188.9 million, consisting of $171.7 million in long term fund outflows, and $17.2 million in money market redemptions. Assets under management were $62.4 billion at August 31, 2010.

Counsel Portfolio Services reported $21.1 million in net new money, with $19.2 million flowing into long term funds, and another $1.9 million into money market funds. At month end, total assets under management were $2.28 billion.

(09/03/10)