New numbers from the Investment Funds Institute of Canada suggest that mutual funds slipped back into net redemptions in September.
IFIC reported that, based on a sample of preliminary data from some of its members, net new sales for September are estimated to be between minus $350 million to $50 million. “Preliminary statistics indicate net redemptions of about $150 million for the month of September”, said Tom Hockin, IFIC’s president and CEO, in a news release. “History shows that sales for the month of September are typically slower than August,” he added.
The preliminary numbers suggest that it was long-term funds that took the hit, as the biggest redemptions are being reported by several of the big independent fund companies. AGF and Fidelity both report $130 million in net redemptions for the month, followed by AIC at $127 million. Investors Group also saw $92 million in net redemptions.
Smaller redemptions were reported by Franklin Templeton, Mackenzie, Scotia, TD, National Bank and Altamira.
CIBC led those firms with positive net sales, recording $91 million in net sales, followed by boutique players, PH&N and Brandes, with $78 million and $72 million in net sales, respectively. RBC had $54 million in net sales.
IFIC also estimates that net assets of the industry at the end of September will be in the range of $406 to $411 billion, down approximately 1% from last month¹s total of $412.9 billion.
Mutual funds hit by more selling
Estimated net sales for September in the red: IFIC
- By: James Langton
- October 2, 2003 October 2, 2003
- 16:30