Summer smiles for fund industry

(August 3, 2005) The mutual fund industry’s surprising summer winning streak continued in July, with IFIC estimating net sales of between $1.4 billion and $1.9 billion.

In June, mutual funds attracted $1.8 billion, the highest total for that month since 1998.

“Results from the past few months indicate Canadians are making their savings and retirement plans a year-round commitment,” said IFIC president Tom Hockin. “And they see mutual funds, with their benefits of diversification and professional management, as one of the investments to help them succeed with their plans.”

Net industry assets are expected to be around $543 billion, up about 3% from June.

RBC Asset Management was at the top of the July chart, with $493 million in net sales. “We have never had a summer like this,” says Brenda Vince, president of RBC Asset Management. “Long-term net sales were almost triple what they were one year ago and more than $200 million stronger than our previous best July, back in 1997.”

TD Asset Management attracted $250 million in net sales, while CI Investment was a close third at $244 million.

AIC still hasn’t benefited from the summer rally, however, with net redemptions of $211 million in July. AGF, Scotia Securities, Fidelity, Altamira and Northwest were also in negative territory.

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