Second straight monthly slump for fund sales

(November 2, 2004) Mutual fund sales were likely in net redemptions in October, but only by about $50 million, according to preliminary data from IFIC.

Net new fund sales for the past month are estimated to be between minus $250 million and plus $150 million, IFIC said Tuesday. “The majority of these redemptions continue to be from money market funds,” said IFIC president Tom Hockin in a statement.

In September, money market funds redemptions reached $894 million as total net sales fell $545 million.

Industry assets for October rose 0.5% to $475 billion, mostly due to strength in the equity markets, Hockin said.

Among fund companies, Brandes led the way with estimated October net sales of $100 million. On the negative side, AIC’s net redemptions reached $247 million and Fidelity’s were $215 million.

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