New Year starts solidly for fund sales

(February 2, 2005) January marked another strong month for the mutual fund industry, with net sales estimated at between $1.3 and $1.7 billion, according to IFIC.

That’s not quite as high as January 2004, when net sales reached $1.8 billion, but tops last month’s figure of $1.2 billion. “With January seeing the fifth straight month of asset increases, we are over half a trillion in assets. Those are good numbers,” said IFIC president Tom Hockin.

Net sales for 2004 were $14.7 billion, the strongest year for the fund industry since 2001.

Total industry assets in January will be in the range of $499 to $502 billion, IFIC predicts, up 0.9% from December.

“With these increases coming during RRSP season, it’s good to see that many Canadians are serious about financial planning and are determined to put something away for their future,” added Hockin.

Among fund companies, RBC Asset Management was among the top sales leaders with $494 million in net new sales. Laggards included AIC, with $304 million in net redemptions, and Fidelity, off $229 million.

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