Winning streak continues for fund sales

(May 4, 2004) The mutual fund industry enjoyed another positive month in April, generating $1.3 billion in net sales, according to preliminary estimates released today by IFIC.

That’s the first time in three years April’s numbers have been on the plus side, notes IFIC president Tom Hockin. “This is the seventh consecutive month of positive sales,” he added. “The majority of April’s sales are expected to be in long term funds.”

Industry assets are expected to total $472 billion, up about 2% from March.

Fund industry watchers had predicted a “seasonal” drop in April, following a strong RRSP season, which generated $11 billion in net sales. But the numbers appear to be better than expected, considering that April is traditionally a weak period for fund sales.

“Long-term fund sales continued to be steady through April, marking twelve consecutive months of positive long-term sales and making it the strongest April in 10 years,” said RBC Asset Management vice president Paul Butler. “We also saw a slight rise in money market redemptions, which is common for the month of April as people make payments toward their taxes.”

RBC was the top fund company last month, reporting net sales of $264 million in April, down from $573 million in March. CI Funds moved into second spot — bumping Investors Group to third — as IFIC added Assante’s assets to CI’s total.

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