Mutual funds suffered about $4.5 billion of net redemptions in September while assets dropped almost 9%, according to preliminary data from the Investment Funds Institute of Canada.
IFIC reported that, based on a sample of preliminary data from some of its members, mutual fund net redemptions are estimated to be between $4.4 billion and $4.9 billion for September. It also estimates that net assets of the mutual fund industry will be between $631.8 billion and $636.8 billion, down approximately 8.8% from last month’s total of $695.6 billion.
Hardest hit were the leading bank-owned firms, RBC Asset Management and TD Asset Management, which had almost $1.3 billion and $1.15 billion in monthly net redemptions, respectively. Money market funds were their biggest source of redemptions, with RBC seeing over $1 billion in redemptions from these funds and about $900 million flowing from TD’s money market funds.
Most firms saw net redemptions during the month. Fidelity Investments Canada was a notable exception, recording $134 million in net sales, including $108 million in long-term net sales. A handful of other firms had some modest positive net sales to, including Dynamic Mutual Funds, Manulife Investments, IA Clarington, Hartford Investments Canada, and Scotia Securities.
“September saw a sizeable decrease in both assets and sales due to the financial situation in the United States,” says Pat Dunwoody, vice president of member services and communications with IFIC.
Mutual funds suffer massive net redemptions in September
But some companies saw modest positive net sales while bank-owned firms took a nosedive
- By: James Langton
- October 2, 2008 October 2, 2008
- 16:29