Mutual fund net sales were a “respectable” $1.6 billion in June, with the bulk of sales going to money market funds, according to statistics released today by the Investment Funds Institute of Canada.

Sales of money market funds were $1.2 billion In June.

“Industry sales were respectable in June at $1.6 billion with investors continuing to focus on Money Market funds. Sales year-to-date were below what they were last year largely due a rise in gross redemptions rather than a fall in gross sales. Year-to-date gross sales were $101.2 billion or 2.2% higher than last year,” says Pat Dunwoody, IFIC’s vp of member services and communications.

Total assets fell to $700.1 billion in June, down from $719.3 billion in May and $706.8 billion last year.

Money market fund assets were $70.1 billion in June, up from $48.5 billion in June 2007

“Assets under management fell in June though industry asset growth was in positive territory year-to-date and we have seen growth in Sector Equity, Global Balanced and Domestic Fixed Income assets year-over-year,” Dunwood says.

Balanced fund sales in June came in at $1.2 billion, up from $990 million in May but down from just under $2 billion at this point last year.

Money market fund sales were $19.3 billion over the last 12 months, up from $4.2 billion over the previous 12 months.

Long-term fund sales were $3.8 billion over the last 12 months, down from $30.9 billion over the previous 12 months.

Net sales over the last 12 months for specialty funds and sector equity funds were $1.7 billion and $544.8 million respectively up from $1.5 billion and -$53.8 million over the previous 12 months.

https://statistics.ificmembers.ca/English/reports/2008/06/public/IFIC_Statistical_Commentary.pdf


EC to limit short sales of major financial companies

The U.S. Securities and Exchange Commission will issue an emergency rule later Tuesday to stop “naked” short selling in major financial firms, including Fannie Mae and Freddie Mac, the SEC said on Tuesday.

Short sellers borrow shares they consider overvalued and sell them. If the price drops, they repurchase the shares, return them and pocket the difference.

The rule would require any person making a short sale in the listed securities to borrow the securities before the short sale is effected and deliver the securities on settlement date.