Mutual fund companies suffered another month of net redemptions in June, according to preliminary estimates from the Investment Funds Institute of Canada.
IFIC, which was prevented from releasing its monthly estimates Monday by a power outage in parts of downtown Toronto, reported Tuesday that funds likely suffered between $20.9 million and $520.9 million of net redemptions in June.
The estimate of June sales figures, based on a sample of preliminary data from some of its members, indicates that long-term funds were generating positive net sales, but that this was overwhelmed by money market redemptions.
“Investor interest in long-term investing was… markedly higher than in May with long-term fund sales last month coming in at close to $950 million, raising the year-to-date total $10 billion above the tally at this point in 2009,” said Pat Dunwoody, vice president of member services and communications with IFIC.
Among the firms reporting to IFIC, Dynamic Mutual Funds led the sales charts in June, with $257 million in overall net sales. It edged out IGM Financial Inc., which had $230 million in monthly net sales. Fidelity Investments Canada ULC and BMO Financial Group were the only other firms reporting at least $100 million in overall net sales.
Industry leader, RBC, boasted $390 million in long-term net sales, but it also recorded $563 million in money market redemptions. RBC led the long-term sales, followed by IGM at $278 million, and Dynamic with $270 million.
While most firms had positive long-term sales, a couple of them, Invesco Trimark Ltd. and Franklin Templeton Investments, had some notable long-term redemptions, $278 million and $226 million, respectively.
In addition to the overall net redemptions, IFIC also estimates that industry net assets were down by approximately 1.44% in the month, and will come in between $589.3 billion and $594.3 billion. “Market volatility was still a factor in June, yet assets remained $45 billion or 7.6% higher than at this point last year,” Dunwoody said.
June money market redemptions swamp sales of long-term funds: IFIC
Investor interest in long-term funds markedly higher than May
- By: James Langton
- July 6, 2010 July 6, 2010
- 09:30