Mutual funds recorded almost $2.6 billion in net sales during April, according to the latest data from the Investment Funds Institute of Canada.
The monthly sales total is up substantially from $1.6 billion in long-term sales during the month last year. Overall sales were less than $500 million last year due to heavy redemptions from money market funds during the month. This year, just $31 million was redeemed from money market funds.
IFIC said that balanced funds enjoyed $2.1 billion in net sales during the month this year, almost evenly split between domestic and international offerings. International equity funds contributed another $1 billion of net sales, but $620 million was redeemed from Canadian equity funds in the month.
TD Asset Management led in overall net sales with $435 million worth, edging out RBC Asset Management, which had $423 million in April net sales. However, RBC held a hefty advantage in long-term funds with more than $478 million in long-term sales to TD’s $309 million.
AGF and Desjardins joined RBC and TD with more than $200 million in overall net sales. BMO Financial and AIM Trimark were both just shy of the $200 million mark. Dynamic Mutual Funds, Scotia Securities and Brandes Investment Partners all had more than $100 million in monthly net sales, too.
AIC, Acuity, Fidelity and National Bank were in overall net redemptions for the month.
Year-to-date net sales has now reached $19.6 billion, the highest level for this period since 1998. Also, total mutual fund assets grew by 1.4% during April to end the month at just under $700 billion, IFIC said. On a year-to date basis assets are up 5.9%, and on a year-over-year basis assets are up 14.9%.
“Continued strength in world markets coupled with strong April fund sales have resulted in year-over-year asset growth of 14.9%” said Pat Dunwoody, IFIC’s vice president, member services and communications. “Historically, there tends to be an industry wide slowdown in sales between March and April when investors take a breather after the RRSP season however this April we’ve seen sales that are $2 billion higher than the same period in either of the last two years.”
April fund sales up substantially over last year, IFIC says
Money flows to balanced and international equity funds
- By: James Langton
- May 15, 2007 May 15, 2007
- 10:45