Stock slump slows fund sales

Mutual fund sales are expected to come in at around $750 million in October, according to IFIC’s preliminary estimates, down from $1.8 billion the previous month.

Based on a sample of data from some members, net new sales for October are expected to be in the range of $550 million to $950 million, IFIC says.

Despite the decline, that’s the best October the fund industry has seen since 2001 and a turnaround from last year, when October’s net sales were in net redemption, to the tune of $53 million.

If the numbers hold up, total net sales for the first 10 months of the year will top $19 billion.

Industry assets in October are expected to be in the range of $536 to $541 billion, down nearly 3% from September.

“Understandably, assets were down last month because of the overall market downturn,” said IFIC president Tom Hockin. “Nevertheless, many Canadians who are saving for the future continue to put their trust in mutual funds.”

The big banks led the way again in September with RBC reporting $461 million in net sales, TD at $413 million and BMO at $257 million. However, CIBC reported net redemptions of $179 million and Scotia Securities dropped $128 million. Other laggards included AIM Trimark, down $191 million and AIC, off $167 million.

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